Kinder Morgan Energy Partners, L.P. KMP has entered into new and
extended long-term transportation and storage agreements with Calpine Energy
Services, L.P. 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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