Kinder Morgan Invests in New Crude by Rail Project at Houston Terminals

  Kinder Morgan Invests in New Crude by Rail Project at Houston Terminals

Business Wire

HOUSTON -- February 21, 2013

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced KW Express
LLC, a partnership between KMP and Watco Companies L.L.C., has entered into a
long-term agreement with Mercuria Energy Trading Company Inc., to construct a
210,000 barrel per day (bpd) crude by rail project at the Greens Port
Industrial Park on the Houston Ship Channel. The project will allow Mercuria
Energy Trading, Inc. to source crude from various origination locations
including Cushing, Okla., West Texas, the Bakken shale area and western Canada
for delivery by rail into the Houston Ship Channel for distribution to various
refiners via pipeline and barges. The facility will have the capability to
unload and load up to three unit trains per day of crude oil and condensate as
well as provide for up to 100,000 bpd of barge loading capacity. KW Express
will own 85 percent of the project and, together with Watco, construct and
operate the project once completed. Mercuria will own the remaining 15percent
interest of the project.

“This will be the first major crude by rail destination facility in the
Houston area with the ability to deliver into the largest refining complex in
the world,” said John Schlosser, Kinder Morgan Terminals president. “It will
provide U.S. and Canadian producers much needed market access and optionality
to deliver their crude oil production.”

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline
transportation and energy storage company and one of the largest publicly
traded pipeline limited partnerships in America. It owns an interest in or
operates approximately 46,000 miles of pipelines and 180 terminals. The
general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Kinder
Morgan is the largest midstream and the third largest energy company in North
America with a combined enterprise value of approximately $100 billion. It
owns an interest in or operates approximately 75,000 miles of pipelines and
180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO[2]
and other products, and its terminals store petroleum products and chemicals
and handle such products as ethanol, coal, petroleum coke and steel. KMI owns
the general partner interest of KMP and El Paso Pipeline Partners, L.P. (NYSE:
EPB), along with limited partner interests in KMP, Kinder Morgan Management,
LLC (NYSE: KMR) and EPB. For more information please visit

This news release includes forward-looking statements. These forward-looking
statements are subject to risks and uncertainties and are based on the beliefs
and assumptions of management, based on information currently available to
them. Although Kinder Morgan believes that these forward-looking statements
are based on reasonable assumptions, it can give no assurance that such
assumptions will materialize. Important factors that could cause actual
results to differ materially from those in the forward-looking statements
herein include those enumerated in Kinder Morgan’s reports filed with the
Securities and Exchange Commission. Forward-looking statements speak only as
of the date they were made, and except to the extent required by law, Kinder
Morgan undertakes no obligation to update or review any forward-looking
statement because of new information, future events or other factors. Because
of these uncertainties, readers should not place undue reliance on these
forward-looking statements.


Kinder Morgan Energy Partners, L.P.
Joe Hollier, (713) 369-9176
Media Relations
Peter Staples, (713) 369-9221
Investor Relations
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