Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced it has
completed construction of its Deer Park Rail Terminal (DPRT) and related
ethanol handling assets at its Pasadena Terminal located along the
Houston Ship Channel. The $19 million project included building a new
ethanol unit-train facility capable of handling 14,000 barrels per day
(bpd) with space for multiple unit trains, an offloading rail rack for
unit-trains of approximately 100 railcars, and an 80,000-barrel storage
tank at DPRT. The company also extended an existing ethanol pipeline by
2.4 miles so that product can be moved from DPRT to its Pasadena
terminal for either storage or blending at multiple area truck racks.
Kinder Morgan successfully unloaded the first ethanol trains last week
and has plans to expand the facility to handle 20,000 bpd. Combined with
other expansions and acquisitions already completed or underway, the
company has now invested approximately $550 million in the renewable
fuels handling business.
"Our DPRT unit-train facility and its inter-terminal connections provide
additional service options to our Gulf Coast customers and further
expand our nationwide distribution network of ethanol handling
facilities connected by rail, marine, truck and pipeline," said KMP
Terminals President Jeff Armstrong.
The project is supported by long-term customer contracts and is expected
to be immediately accretive to KMP unitholders.
With the DPRT facility, Kinder Morgan now has six unit-train facilities
located in key markets across the United States - Lomita and Richmond,
Calif., Dallas and Deer Park, Texas, Baltimore, Md., and Linden, N.J.
These facilities, along with the company's other ethanol terminal
assets, will help meet the nation's growing need for biofuels mandated
by the Renewable Fuels Standard. In 2010, KMP handled approximately 30
percent of the ethanol used in the United States.
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 such products as ethanol, coal, petroleum coke and
steel. 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 $33
billion. The general partner of KMP is owned by Kinder Morgan, Inc.
(NYSE: KMI). Combined, KMI and KMP have an enterprise value of
approximately $55 billion. For more information please visit www.kindermorgan.com.
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.
