Kinder Morgan, MarkWest Utica EMG Announce Plans to Form Joint Venture to Support Northern Ohio Rich-Gas Development and NGL

  Kinder Morgan, MarkWest Utica EMG Announce Plans to Form Joint Venture to
  Support Northern Ohio Rich-Gas Development and NGL Takeaway from the Utica
  and Marcellus Shale Resource Plays

Business Wire

HOUSTON -- August 7, 2013

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) (Kinder Morgan), and MarkWest
Utica EMG, L.L.C. (MarkWest Utica EMG), a joint venture between MarkWest
Energy Partners, L.P. (NYSE: MWE) (MarkWest) and The Energy and Minerals Group
(EMG) today announced they have signed a letter of intent to form a midstream
joint venture (JV) to pursue two critical new projects to support producers in
the Utica and Marcellus shales in Ohio, Pennsylvania and West Virginia. The
first project consists of the development of a 400 million-cubic-foot-per-day
(MMcf/d) cryogenic processing complex in Tuscarawas County, Ohio, utilizing an
existing, 220-acre site that Kinder Morgan has under option. The second
project consists of the development of an initial, 200,000 barrels-per-day
(bpd), C2+ natural gas liquids (NGL) pipeline that originates at the planned
JV processing facilities in Ohio and transports NGLs to Gulf Coast
fractionation facilities.

Key elements of the processing complex project include:

  *MarkWest Utica EMG would anchor the JV’s first of two planned 200 MMcf/d
    cryogenic processing plants to be constructed on Kinder Morgan’s existing
    220-acre site in Tuscarawas County, Ohio (JV processing complex). The JV
    would expect the initial 200 MMcf/d cryogenic processing plant to be in
    service by the fourth quarter of 2014 with the second 200 MMcf/d plant
    in-service shortly thereafter, subject to timing of customer commitments.
    The existing 220-acre site is expandable and could accommodate more than 1
    billion cubic feet per day of processing capacity;
  *MarkWest Utica EMG would deliver rich-gas volumes to the JV processing
    complex through an extension of its existing rich-gas gathering system in
    Harrison, Belmont, Guernsey, Noble and Monroe counties in Ohio. The JV
    processing complex would provide MarkWest Utica EMG’s producer customers
    with additional residue outlets into the Tennessee Gas Pipeline and
    Dominion Transmission pipeline systems;
  *The JV processing complex would serve new customers in Carroll,
    Columbiana, Mahoning and Trumbull counties in northern Ohio and provide a
    critical full-service solution, which includes gas processing, NGL
    transportation and fractionation and residue gas outlets;
  *To deliver the northern Utica gas to the processing complex, Kinder Morgan
    has obtained regulatory approval to convert a portion of an existing
    26-inch Tennessee Gas Pipeline Company, L.L.C. pipeline into rich-gas
    gathering service, which could begin receiving rich-gas by the fourth
    quarter of 2014;
  *The JV would construct a new pipeline to deliver NGLs produced at the JV
    processing complex into MarkWest and MarkWest Utica EMG’s extensive NGL
    gathering network for short-term and long-term fractionation at its Ohio
    and Pennsylvania fractionation and marketing complexes;
  *The JV would own the processing complex on a 50-50 basis and MarkWest
    Utica EMG would operate the facilities;

Key elements of the NGL pipeline project include:

  *Kinder Morgan and MarkWest Utica EMG will develop a NGL pipeline project
    from the tailgate of the JV processing complex to Gulf Coast fractionation
    facilities through the conversion of over 900 miles of Kinder Morgan’s
    24-inch and 26-inch Tennessee Gas Pipeline system currently in natural gas
    service from Tuscarawas County, Ohio to Natchitoches, La., and the
    construction of approximately 200 miles of new NGL pipeline from
    Natchitoches to Mont Belvieu, Tex., and/or south Louisiana. Kinder Morgan
    and MarkWest Utica EMG are evaluating constructing new fractionation
    facilities, as well as utilizing third-party fractionation facilities
    throughout the Gulf Coast;
  *The proposed NGL pipeline would access MarkWest and MarkWest Utica EMG’s
    extensive NGL pipeline network that extends throughout the rich-gas areas
    of the Marcellus and southern Utica to deliver NGLs to the new NGL
  *By converting over 900 miles of existing Tennessee Gas Pipeline assets and
    utilizing MarkWest and MarkWest Utica EMG’s existing NGL network, the JV
    parties believe their NGL pipeline is best positioned to provide the most
    cost effective Y-grade outlet from the Utica and Marcellus shale plays to
    the Gulf Coast area markets;
  *The NGL pipeline would be expandable to 400,000 bpd with the addition of
    pump stations;
  *Subject to sufficient shipper commitments, permitting and all related
    regulatory approvals, a fourth quarter 2015 in-service date for the NGL
    pipeline is anticipated.
  *Kinder Morgan would own at least 75 percent of the NGL pipeline and
    MarkWest Utica EMG would have the option to invest up to 25 percent.
    Kinder Morgan would operate the pipeline.

“We are pleased to announce this exciting joint venture with MarkWest in the
Utica and Marcellus shale resource plays,” said Kinder Morgan Chairman and CEO
Richard D. Kinder. “The combination of Kinder Morgan’s strategically located
and existing pipeline assets that traverse through the heart of the Utica and
Marcellus shale plays, along with MarkWest’s existing and significant
midstream footprint throughout the Utica and Marcellus shale plays, should
provide significant growth opportunities for the JV.”

“We are excited to partner with Kinder Morgan in this unique opportunity that
supports the development of industry-leading midstream solutions,” said
MarkWest Chairman, President and Chief Executive Officer Frank Semple. “The JV
processing complex expands our footprint into northern Ohio and complements
our existing full-service midstream infrastructure in Ohio, West Virginia and
Pennsylvania. The planned joint venture Y-grade pipeline will be by far the
most efficient project for the Marcellus and Utica producers to access the
Gulf Coast NGL markets and is another critical step in support of our
long-term objective of providing our producer customers with multiple market
options and maximum value for their natural gas and natural gas liquid

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 more than 54,000 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 $115 billion. It owns an
interest in or operates more than 82,000 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 and EPB and shares in Kinder
Morgan Management, LLC (NYSE: KMR). For more information please visit

MarkWest Energy Partners, L.P. is a master limited partnership engaged in the
gathering, processing and transportation of natural gas; the gathering,
transportation, fractionation, storage and marketing of natural gas liquids;
and the gathering and transportation of crude oil. MarkWest has a leading
presence in many unconventional gas plays including the Marcellus Shale, Utica
Shale, Huron/Berea Shale, Haynesville Shale, Woodford Shale and Granite Wash

The Energy & Minerals Group is a highly specialized private equity firm that
focuses exclusively on investing across various facets of the global natural
resource industry that are integral to the global economy. EMG has $6.2
billion of total investor commitments (including co-investments) with in
excess of $3.2 billion deployed across the energy complex since inception. For
additional information on EMG, please contact Alexandra Coolidge at

Kinder Morgan Cautionary Language:

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.

MarkWest Cautionary Language:

This press release includes “forward-looking statements.” All statements other
than statements of historical facts included or incorporated herein may
constitute forward-looking statements. Actual results could vary significantly
from those expressed or implied in such statements and are subject to a number
of risks and uncertainties. Although MarkWest believes that the expectations
reflected in the forward-looking statements are reasonable, MarkWest can give
no assurance that such expectations will prove to be correct. The
forward-looking statements involve risks and uncertainties that affect
operations, financial performance, and other factors as discussed in filings
with the Securities and Exchange Commission (SEC). Among the factors that
could cause results to differ materially are those risks discussed in the
periodic reports filed with the SEC, including MarkWest’s Annual Report on
Form 10-K for the year ended December 31, 2012 and our Quarterly Report on
Form 10-Q for the quarter ended March 31, 2013. You are urged to carefully
review and consider the cautionary statements and other disclosures made in
those filings, specifically those under the heading “Risk Factors.” MarkWest
does not undertake any duty to update any forward-looking statement except as
required by law.


Kinder Morgan:
Media Relations
Richard Wheatley, (713) 420-6828
Investor Relations
(713) 369-9490
Frank Semple, 866-858-0482
Chairman, President & CEO
Nancy Buese, 866-858-0482
Executive VP & CFO
Josh Hallenbeck, 866-858-0482
VP of Finance & Treasurer
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