HOUSTON--(BUSINESS WIRE)--Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced that Kinder Morgan Canada Terminals has entered into long-term contracts to support construction of an additional 1.2 million barrels of merchant storage capacity at Trans Mountain Pipeline’s Edmonton terminal in Strathcona County, Alberta. Construction of the new tankage is scheduled to commence this spring following receipt of supporting permits, with completion expected in late 2014. Phase 2 will cost approximately $112 million.
Construction of Phase 1 of the expansion, which consists of 3.6 million barrels of new storage, is well underway and all of that capacity is expected to be in service in late 2013. Total capital investment for the combined 4.8 million barrel project is approximately $420 million and is supported by long-term contracts with major producers and refiners. When completed, total storage capacity at the Edmonton facility will be 9.4 million barrels, including the existing Trans Mountain system facility and the North 40 merchant terminal.
“The new tanks further demonstrate the strategic importance of Trans Mountain’s Edmonton hub and the role it will play in staging Western Canadian crude oil production into export markets, including West Coast markets served by Trans Mountain Pipeline,” said Bill Henderson, vice president of Kinder Morgan Canada Terminals. “The hub also gives Kinder Morgan’s customers flexibility and optionality in this time of increasing production and volatile prices.”
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 46,000 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 75,000 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. KMI owns the general partner interest 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 www.kindermorgan.com.
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.