HOUSTON--(BUSINESS WIRE)--Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced that it
has successfully closed a binding open season for the Palmetto Project
and received committed volumes from shippers sufficient to support the
project. The Palmetto Project will provide shippers a new refined
products pipeline service to move gasoline, diesel and ethanol from
Louisiana, Mississippi and South Carolina to points in South Carolina,
Georgia and Florida. The open season closed on Oct. 30.
“We are pleased that we received sufficient shipper commitments to
proceed with the project, and we will be notifying shippers of awarded
capacity in November,” said Ron McClain, president of Products Pipelines
for KMP. “Contract terms will range from five to 10 years per shipper,
and the project remains on track for an in-service date of July 2017,
pending regulatory approvals.”
As previously announced, the approximately $1 billion Palmetto Project
would provide pipeline shippers looking to move refined petroleum
products from the Gulf Coast with access to new markets in the
Southeast. The project has a design capacity of 167,000 barrels per day
and would consist of a segment of expansion capacity on the Plantation
pipeline that Palmetto would lease from Plantation Pipe Line Company
between Baton Rouge, Louisiana, and Belton, South Carolina. A new
360-mile pipeline from Belton, South Carolina, to Jacksonville, Florida,
would also be constructed as part of the project. KMP owns approximately
51 percent of Plantation.
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 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 $120 billion. It owns an interest in or operates
approximately 80,000 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 interests of KMP and El Paso Pipeline Partners,
L.P. (NYSE: EPB), along with limited partner interests in KMP, Kinder
Morgan Management, LLC (NYSE: KMR) and EPB. 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.