HOUSTON--(BUSINESS WIRE)--Kinder Morgan, Inc. (NYSE: KMI) today announced that its Texas
Intrastate Pipelines group has entered into a 20-year firm
transportation services agreement with SK E&S LNG, LLC (SK LNG), a
subsidiary of SK E&S Co. LTD. Under the agreement, KMI will invest more
than $150 million to provide more than 320,000 dekatherms per day of
firm natural gas transportation services to support SK LNG’s Train III
liquefied natural gas export capacity at Quintana Island, Texas. This
Train is part of Freeport LNG Development’s Freeport LNG export facility
which in total will liquefy up to 13.2 million tonnes per annum once
fully operational.
KMI will construct and operate approximately 40 miles of pipeline
extending from its existing Kinder Morgan Tejas mainline to an
interconnection point with Freeport LNG’s existing pipeline located in
Stratton Ridge, Texas. KMI will also expand and construct additional
compression on its existing Kinder Morgan Texas and Kinder Morgan Tejas
pipeline systems to provide these services upon the startup of Train
III, which is expected to occur in the third quarter of 2019. This
transportation services agreement provides for the required expansion of
the KMI intrastate system by over 1 billion cubic feet per day and will
provide additional capacity to the Freeport and Chocolate Bayou areas.
“We are delighted to enter into this business relationship with SK, an
emerging leader in the LNG export arena in the United States,” said
Duane Kokinda, president of Kinder Morgan’s Midstream Group. “Our
extensive network of assets on and near the Gulf Coast of Texas is
uniquely positioned to provide SK with access to a variety of gas supply
sources for its requirements at the Freeport LNG facility. LNG exports
are one of the catalysts driving the growing demand for more natural gas
in the United States.”
The agreements are subject to certain conditions, as well as making a
final investment decision to construct the Freeport LNG Train III
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 SK E&S LNG, LLC
SK E&S LNG, LLC is a limited liability company that has entered into a
20-year Liquefaction Tolling Agreement with Freeport LNG Expansion, L.P.
for 2.2 million tons per annum of LNG commencing upon completion of
construction of the third train at Freeport LNG’s natural gas
liquefaction facility located on Quintana Island near Freeport, Texas.
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.
