Kinder Morgan, Calpine Announce 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.”
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