Kinder Morgan Energy Partners and Calpine Energy Services Execute Transport Agreement
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) has entered into new and extended long-term transportation and storage agreements with Calpine Energy Services, L.P. (NYSE: CPN). Under the agreements, KMP will provide up to 450,000 dekatherms per day (dth/d) of firm transportation service as well as 5 billion cubic feet (bcf) of storage capacity to serve nine of Calpine's electric generation facilities in Texas. The service level under these new agreements represents an increase of 150,000 dth/d of transport and one bcf of storage over agreements previously in place. KMP will invest approximately $30 million to expand its Texas intrastate pipeline system in South Texas to extend service to Calpine's Magic Valley Generating Station in Hidalgo County.
Duane Kokinda, president of KMP's Midstream Group said, “We are extremely pleased to extend our longstanding business relationship with Calpine and we look forward to adding a ninth Calpine plant to the list of electric generation facilities in Texas that we serve.”
“Ensuring the availability and reliability of natural gas supply is an important aspect of optimizing the value of Calpine's clean, efficient and flexible power plants,” said Bob Hayes, Calpine's vice president of Natural Gas Trading. “Expansion of our agreements with Kinder Morgan, a key business partner, will serve to support these efforts across most of our power plants in Texas.”
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.