Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today launched a 30-day
non-binding open season to further gauge shipper interest for its
Marcellus Lateral Project, which would enable the company to offer a new
service for moving natural gas liquids (NGL) from the Marcellus Shale
Basin to fractionation plants and petrochemical facilities near Sarnia,
Ontario. The NGLs would be transported via approximately 230 miles of
new pipeline and KMP’s existing Cochin pipeline system. Subject to
regulatory approvals and necessary capital investments, Marcellus NGL
shipments could begin as soon as mid-2012. Given appropriate levels of
shipper support, Kinder Morgan could move over 150,000 barrels per day
(bpd) at a rate as low as nine cents per gallon.
“We have developed our proposal based on discussions with Marcellus
producers and gas processors and believe that Kinder Morgan offers the
quickest and most efficient solution for the delivery of NGLs to the
premium Ontario market,” said Don Lindley, vice president of business
development for KMP’s Products Pipeline group. “We also anticipate, at
some point in time, reversing a section of Cochin to offer service to
Chicago area refiners, fractionation plants and petrochemical
facilities.”
Those interested in obtaining more detailed information about this open
season can visit the Kinder
Morgan web site or contact either Karen Kabin at (713) 369-9268 or Karen_Kabin@kindermorgan.com,
or Don Lindley at (713) 369-8840 or Don_Lindley@kindermorgan.com.
Cochin
is a multi-product pipeline consisting of approximately 1,900 miles of
12-inch pipeline operating between Fort Saskatchewan, Alberta, and
Windsor, Ontario. Cochin traverses three provinces in Canada and seven
states in the United States, transporting propane, butane and natural
gas liquids to the midwestern United States and eastern Canadian
petrochemical and fuel markets. The pipeline includes 31 pump stations
spaced at 60-mile intervals and five U.S. propane terminals. Underground
storage, owned by third parties and KMP, is available at Fort
Saskatchewan and Windsor.
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline
transportation and energy storage company in North America. KMP owns an
interest in or operates more than 28,000 miles of pipelines and 180
terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2
and other products, and its terminals store petroleum products and
chemicals and handle bulk materials like coal and petroleum coke. KMP is
also the leading provider of CO2 for enhanced oil recovery projects in
North America. One of the largest publicly traded pipeline limited
partnerships in America, KMP has an enterprise value of over $30
billion. The general partner of KMP is owned by Kinder Morgan, Inc., a
private company.
This news release includes forward-looking statements. Although
Kinder Morgan believes that its expectations 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
are enumerated in Kinder Morgan’s Forms 10-K and 10-Q as filed with the
Securities and Exchange Commission.
