HOUSTON--(BUSINESS WIRE)--Kinder Morgan, Inc. (NYSE: KMI) today announced that Kinder Morgan Texas
Pipeline, Kinder Morgan Tejas Pipeline and Tennessee Gas Pipeline
Company (TGP) have entered into 15-year firm transportation agreements
and a multi-year storage agreement with Cheniere Energy, Inc. (NYSE MKT:
LNG) through its subsidiary, Corpus Christi Liquefaction, LLC. Under the
agreements, KMI will provide 550,000 dekatherms per day (Dth/d) of firm
natural gas transportation service, as well as 3 billion cubic feet
(Bcf) of natural gas storage capacity to serve the LNG export facility
being developed near Corpus Christi. The project is being designed and
permitted for up to three trains, with aggregate design production
capacity of approximately 13.5 million tonnes per annum (mtpa) of LNG.
The natural gas transportation service can be increased to 800,000 Dth/d
upon the completion of certain conditions in the Kinder Morgan Texas
Pipeline agreement.
KMI will expand its existing Texas intrastate pipeline system in South
Texas to provide 250,000 Dth/d of firm transportation and 100 percent of
the storage services, and expand its TGP Pipeline to provide 300,000
Dth/d of firm transportation from various Zone 1 receipt points near its
Station 87 Pool located in Portland, Tennessee. The construction of the
facilities necessary to support these services will be coordinated with
the startup of the LNG export facility, which is expected in 2018/2019.
KMI expects to invest approximately $187 million for this project.
“We are pleased to provide transportation and storage services that
access diverse supply basins to Corpus Christi Liquefaction for this LNG
export opportunity,” said Tom Martin, KMI’s president of Natural Gas
Pipelines. “The need for additional natural gas transportation services
continues to increase, and Kinder Morgan’s portfolio of natural gas
assets across the United States is well positioned to serve
infrastructure expansion opportunities and meet increasing market
demand.”
“This agreement builds on our existing relationship with Kinder Morgan,
which will also service a portion of our Sabine Pass Liquefaction
terminal in Louisiana, and moves us closer to securing the supply
infrastructure needed to provide natural gas to our Corpus Christi LNG
export facility,” said Corey Grindal, vice president of Supply and
Marketing for Cheniere. “Access to multiple and diverse supply basins
and an extensive pipeline network are both important factors for
securing the natural gas required to meet our customers’ needs.”
The agreements are subject to, among other things, Corpus Christi
Liquefaction making a final investment decision to construct the Corpus
Christi Liquefaction Project.
About Kinder Morgan
Kinder Morgan, Inc. (NYSE: KMI) is the largest energy infrastructure
company in North America. It owns an interest in or operates
approximately 80,000 miles of pipelines and 180 terminals. The company’s
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.
Kinder Morgan is the largest midstream and third largest energy company
in North America with an enterprise value of more than $125 billion. For
more information please visit www.kindermorgan.com.
About Cheniere Energy
Cheniere Energy, Inc. (NYSE MKT: LNG) is a Houston-based energy company
primarily engaged in LNG-related businesses. Its subsidiary, Cheniere
Energy Partners, L.P. (NYSE MKT: CQP), is developing a liquefaction
project adjacent to the existing regasification facilities at the Sabine
Pass LNG terminal, and will include up to six LNG trains with aggregate
design production capacity of up to 27 mtpa. Construction has begun on
the first four LNG trains. Cheniere has also initiated a project to
develop liquefaction facilities near Corpus Christi, Texas, which will
include up to three LNG trains with aggregate design production capacity
of up to 13.5 mtpa. Upon completion of certain conditions precedent,
construction is expected to commence on the Corpus Christi liquefaction
project in early 2015. Additional information about Cheniere Energy,
Inc. may be found on its website located at http://www.cheniere.com.
Kinder Morgan Cautionary Language:
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.
Cheniere Energy Cautionary Language:
This press release contains certain statements that may include
"forward-looking statements" within the meanings of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. All statements, other than statements of historical fact, included
herein are "forward-looking statements." Included among "forward-looking
statements" are, among other things, (i) statements regarding Cheniere's
business strategy, plans and objectives, including the construction and
operation of liquefaction facilities, (ii) statements regarding our
expectations regarding regulatory authorizations and approvals, (iii)
statements expressing beliefs and expectations regarding the development
of Cheniere's LNG terminal and pipeline businesses, including
liquefaction facilities, (iv) statements regarding the business
operations and prospects of third parties, (v) statements regarding
potential financing arrangements and (vi) statements regarding future
discussions and entry into contracts. Although Cheniere believes that
the expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties, and
these expectations may prove to be incorrect. Cheniere's actual results
could differ materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those
discussed in Cheniere's periodic reports that are filed with and
available from the Securities and Exchange Commission. You should not
place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. Other than as required under
the securities laws, Cheniere does not assume a duty to update these
forward-looking statements.