Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced that shippers have signed binding 20-year contracts for approximately 510,000 barrels per day (bpd) of capacity in support of expanding the pipeline system. Based on these finalized commitments, the proposed expansion will increase capacity on Trans Mountain from approximately 300,000 bpd to about 750,000 bpd at a projected cost of $4.1 billion.
“We are pleased to finalize these binding contracts with our shippers and to refine the preliminary scope of the proposed project,” said Ian Anderson, president of Kinder Morgan Canada. “The proposed project will significantly increase market access for Canadian crude and will expand Trans Mountain by completing the twinning of the existing pipeline from Edmonton, Alberta, to Burnaby, British Columbia.” The final commitments were about 150,000 bpd less than the company announced on April 12 following the open season due to a few shippers failing to obtain their boards’ approvals.
The project will continue with consultations and regulatory application preparation as previously announced.
For almost 60 years, the 1,150-km Trans Mountain pipeline system has been safely and efficiently providing the only west coast access for Canadian oil products, including about 90 percent of the gasoline supplied to the interior and south coast of British Columbia.Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates approximately 29,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO 2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMP is also the leading provider of CO 2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP and Kinder Morgan Management, LLC (NYSE: KMR) have an enterprise value of over $40 billion. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Combined, KMI, KMP and KMR constitute the largest midstream energy entity in the United States with an enterprise value of over $65 billion. For more information please visit www.kindermorgan.com. This news release includes forward-looking statements. Although Kinder Morgan believes that its expectations 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 are enumerated in Kinder Morgan’s Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.