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05/10/2016

NGPL Announces Expansion Opportunities

HOUSTON--(BUSINESS WIRE)--Natural Gas Pipeline Company of America LLC (NGPL) today announced that it is seeking non-binding solicitations of interest for a second phase of its Chicago Market Expansion Project and its Gulf Coast Southbound Expansion Project. NGPL is seeking customer interest in additional expansion capacity following the success of Phase 1 of these projects, demonstrating the company’s commitment to grow its business in line with customer needs. This follows the recent announcement of a capital contribution of $623 million from NGPL’s parent companies, Kinder Morgan, Inc. and Brookfield Infrastructure Partners L.P., which was used to pay down the majority of its term loan balance and all of its revolving credit facility borrowings.

“As NGPL begins construction of the first phase of its Chicago Market Expansion Project and prepares to file a Certificate application with the Federal Energy Regulatory Commission (FERC) for the Gulf Coast Southbound Expansion Project, we are pleased to present new, cost-effective expansion capacity opportunities to the market,” said NGPL President David Devine. “We believe these projects provide benefits to our various customers, including local distribution companies, power plants, producers and marketers, and emerging markets in Mexico and LNG liquefaction. As the national pipeline grid continues its transformation, NGPL’s transmission and storage assets are uniquely positioned to move gas supplies to both traditional and emerging markets with the highest value. We look forward to working with all interested parties to develop the second phase of each of these projects.”

The FERC approved NGPL’s request for a Certificate for the first phase of the Chicago Market Expansion Project on March 17, 2016. This project will increase NGPL’s capacity by 238,000 dekatherms per day (Dth/d) and provide natural gas transportation service on its Gulf Coast mainline system from the Rockies Express Pipeline (REX) interconnection in Moultrie County, Illinois, to points north on NGPL’s system. The first phase of this project, which is fully subscribed under long-term customer contracts, is expected to be placed into service in the fourth quarter of 2016. Phase 2 of the project would include construction of additional compression facilities at NGPL’s new Compressor Station 312 currently under construction in Livingston County, Illinois, and it would provide up to 200,000 Dth/d of incremental firm transportation service to markets in the Chicago area from the existing REX interconnection or other receipt points along NGPL’s system. The targeted in-service date for Phase 2 will be determined based upon shippers’ needs as determined in the solicitation process.

The Gulf Coast Southbound Expansion Project is a market-driven response to access increasing domestic natural gas supplies available to NGPL for delivery to growing industrial demand in the Gulf Coast area. The first phase of the project, which is fully subscribed under long-term customer contracts, is designed to transport 460,000 Dth/d of incremental firm transportation service from NGPL’s interstate pipeline interconnects in Illinois, Arkansas and Texas to points south on NGPL’s pipeline system in South Texas. NGPL expects to file a 7(c) certificate application with the FERC in the third quarter of 2016, and the first phase is expected to be placed into service in the fourth quarter of 2018 pending regulatory approval. The proposed second phase of this project will provide for up to 250,000 Dth/d of incremental firm transportation service to existing and expanding markets in NGPL’s Texas and Louisiana Gulf Coast service areas from existing or new receipt points in the Midwest. Pending regulatory approvals, the projected in-service date for Phase 2 is the fourth quarter of 2019.

For additional information on the Gulf Coast Southbound Expansion Project, contact Jason Sweeney, director of business development for NGPL, at Jason_sweeney@kindermorgan.com or (713) 420-6055. For additional information on the Chicago Market Expansion Project, contact Frank Strong, director of business development for NGPL, at CMEP@kindermorgan.com or (630) 725-3051. Visit the Kinder Morgan web site at www.kindermorgan.com for additional information on both projects.

About NGPL

NGPL owns one of the largest interstate pipeline systems in the country with approximately 9,200 miles of pipeline, more than 1 million horsepower of compressor facilities and 288 billion cubic feet of working gas storage. NGPL is jointly owned by Kinder Morgan, Inc. and Brookfield Infrastructure Partners L.P., and Kinder Morgan operates the system.

This release includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Generally the words “expects,” “believes,” “anticipates,” “plans,” “will,” “shall,” “estimates,” and similar expressions identify forward-looking statements, which are generally not historical in nature. 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 the Company believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance that any such forward-looking statements will materialize. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, the Company undertakes no obligation to update any forward-looking statement because of new information, future events or other factors. Because of these risks and uncertainties, readers should not place undue reliance on these forward-looking statements.

Contact:

Kinder Morgan
Media Relations
Sara Hughes, (713) 369-9176
sara_hughes@kindermorgan.com
or
Investor Relations
(713) 369-9490
km_ir@kindermorgan.com
www.kindermorgan.com

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