HOUSTON--(BUSINESS WIRE)--Jul. 31, 2014--
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced that El
Paso Natural Gas Company (EPNG) has entered into a 21-year firm
transportation agreement with Mexico’s Comisión Federal de Electricidad
(CFE) to initially provide approximately 163,000 dekatherms per day
(Dth/d) of firm transportation capacity by October 2014, ramping up to
200,000 Dth/d by October 2017 and 550,000 Dth/d by October 2020. The
phased capacity increases will be accomplished using existing and
expansion capacity on the EPNG system. As previously announced, capital
expenditures are estimated at approximately $529 million.
Engineering and procurement activities have begun on the first phase of
work, which involves system improvements to deliver volumes to the
Sierrita Pipeline near Tucson by October 2014. The second phase will
result in incremental deliveries of natural gas to the Sierrita Pipeline
and to California, and is expected to be completed by October 2020. The
Sierrita Pipeline is expected to be in service in September of this year.
“This firm transportation agreement will help CFE to realize its goal of
converting numerous fuel oil-powered generation plants throughout Mexico
to natural gas, as well as provide transportation for a number of new
gas-fired plants currently under development,” said West Region Gas
Pipeline President Mark Kissel.
The agreement provides for deliveries primarily to a new point of
interconnection with the Sierrita Pipeline project along EPNG’s South
Mainline and also to California.
Transportation service will be provided by utilizing existing capacity
available on EPNG’s North Mainline, along with undertaking certain
system upgrades to enhance deliverability to the South Mainline. In
order to facilitate the full 550,000 Dth/d of service by October 2020,
EPNG is planning an expansion that would consist of looping its Havasu
Crossover line and installing new compression, as well as undertaking
modifications at several existing compressor stations to facilitate
west-to-east flow along the South Mainline. This project is included in
KMP’s $15.4 billion backlog, and the associated volume was included in
the 4.8 billion cubic feet of executed and pending firm transport
commitments described in KMP’s second quarter earnings release.
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 54,000 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 fourth
largest energy company in North America with a combined enterprise value
of approximately $110 billion. It owns an interest in or operates
approximately 80,000 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 interests 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.
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
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.
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.
Source: Kinder Morgan Energy Partners, L.P.
Kinder Morgan Energy Partners, L.P.
Richard Wheatley, (713) 420-6828