Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced plans to
modify and expand the existing Cochin Pipeline system to provide a
solution for transporting natural gas liquids (NGL) from the Marcellus
Shale Basin to fractionation plants and chemical markets near Sarnia,
Ontario, and Chicago, Ill.
Kinder Morgan plans to build approximately 250 miles of NGL pipeline
from the Marcellus Shale Basin in southern Pennsylvania to the Cochin
interconnect at Riga, Mich. From Riga, Kinder Morgan anticipates that
product will be transported through the existing Cochin Pipeline system
to Windsor, Ontario, and then through the Windsor-Sarnia Pipeline to
Sarnia. Kinder Morgan also plans to reverse the eastern leg of its
Cochin pipeline in order to move NGLs from Riga to the Chicago area,
where it expects to build an additional pipeline to connect to existing
fractionation facilities and chemical plants.
"Our proposed pipeline and key existing infrastructure offers NGL
producers the quickest and most efficient solution to get their product
to the market," said Don Lindley, vice president of business development
for Kinder Morgan’s Products Pipeline group.
The pipeline will be designed to transport mixed NGLs (Y-grade), as well
as purity NGLs such as ethane, and will have an initial throughput
capacity of 75,000 barrels per day and can be expanded to handle up to
175,000 barrels per day.
The recent decision by Canada’s National Energy Board directing the
reconnection of the Cochin Pipeline to the Windsor-Sarnia Pipeline will
enable Cochin Pipeline shippers to have access to the Sarnia chemical
complex. Kinder Morgan anticipates offering transportation from
Marcellus to Sarnia for under 14 cents per gallon.
Kinder Morgan expects to move forward with an open season in the second
quarter of 2010. Parties interested in receiving the open season
offering should contact either Karen Kabin at (713) 369-9268 or Karen_Kabin@kindermorgan.com,
or Don Lindley at (713) 369-8840.
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 approximately 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 more than $30
billion. The general partner of KMP is owned by Kinder Morgan, Inc., a
private company. For more information please visit www.kindermorgan.com.
This news release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. 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 Form
10-K and 10-Q as filed with the Securities and Exchange Commission.
