Kinder Morgan Secures Additional Throughput Commitment for Condensate Processing Facility Expansion

  Kinder Morgan Secures Additional Throughput Commitment for Condensate
  Processing Facility Expansion

  Company to invest approximately $170 million to expand facility for second

Business Wire

HOUSTON -- March 28, 2013

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced it has entered
into a long-term, fee-based agreement with BP North America to underwrite an
additional 50,000 barrels per day (bpd) of throughput capacity at the
petroleum condensate processing facility Kinder Morgan is constructing near
its Galena Park terminal on the Houston Ship Channel. With the new agreement,
Kinder Morgan will invest an additional $170 million to add a second unit to
its previously announced $200 million condensate processing facility and
increase the facility’s total capacity to 100,000 bpd. The investment also
includes the company building an additional 700,000 barrels of storage
capacity for product being split at the facility.

“We are pleased to secure long-term contracts for all of the throughput
capacity at our facility, and provide BP with the processing needed for Eagle
Ford Shale production and other condensates,” said KMP Products Pipelines
President Ron McClain. “Combined with our recently completed Kinder Morgan
Crude Condensate (KMCC) pipeline, we are able to provide unparalleled
connectivity to crude oil and clean products markets on the Texas Gulf Coast.”
The transaction is expected to be immediately accretive to cash distributable
to KMP unitholders upon the project’s completion in the second quarter of

Kinder Morgan’s processing facility will split condensate into its various
components, such as light and heavy naphtha, kerosene, diesel and gas oil, and
can be further expanded pending additional market interest. Kinder Morgan
previously announced the first phase of its processing facility when it
secured the initial commitment of 25,000 bpd of capacity. The company expects
to place the first unit in service in the first quarter of 2014.

Paul Reed, Chief Executive of BP’s integrated supply and trading business,
said, “BP is proud to build upon our strategic partnership with Kinder Morgan
through an increased footprint in Galena Park. We believe that by accessing
this additional throughput capacity we will be better placed to provide U.S.
producers a full suite of services including access to the best homes for
their crude and condensates. It will also enable BP to service our customers
better and more efficiently manage their feedstock and product needs. BP
remains committed to helping unlock additional U.S. domestic energy

KMCC is an approximately 180-mile pipeline that transports crude and
condensate from the Eagle Ford Shale in South Texas to the Houston Ship

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 44,000 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 73,000 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 interests 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.
Media Relations
Emily Mir, (713) 369-8060
Investor Relations
(713) 369-9490
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