The boards of directors of the Kinder Morgan companies approved the 2013 budgets at the January board meeting, and the budgets will be discussed in detail during the company’s annual analyst conference on Jan. 30, 2013, in Houston. The conference starts at 8 a.m. CT and will be webcast live.
- Southern Natural Gas Company (SNG) completed an approximately $50 million sale of non-core offshore assets south of the Toca compressor station in Louisiana to High Point Gas Transmission (the Toca compressor station was not included in the sale). The divested assets included approximately 600 miles of pipelines and related facilities.
- Southern LNG Company (SLNG) and Elba Express Company filed an application with FERC in December for an environmental review of a project to construct and operate a liquefaction project at Elba Island, near Savannah, Ga., and also modify the Elba Express pipeline. Pending regulatory approval, the Elba Island regasification terminal will have the added capability to liquefy domestic natural gas for export. In June 2012, SLNG received Department of Energy (DOE) authorization to export domestically produced LNG to Free Trade Agreement (FTA) countries. In August 2012, SLNG filed an application with the DOE requesting authorization to export up to 4 million tons per year of LNG (equivalent to approximately 0.5 billion cubic feet of gas per day) from the Elba Island Terminal to any non FTA country.
- Elba Express Pipeline is nearing second quarter 2013 completion of construction and commissioning of a new, 10,000 horsepower compressor station in Hart County, Ga. The station will provide customers with additional capacity and increased operational flexibility in transporting natural gas either north or south on the Elba Express Pipeline. Elba Express was placed in service in March 2010 and consists of approximately 190 miles of 42- and 36-inch diameter natural gas pipeline.
- In November, FERC notified Wyoming Interstate Company (WIC) that it was beginning a rate proceeding under Section 5 of the Natural Gas Act. WIC is aggressively defending its current rates, which the company believes are just and reasonable. Any outcome from this FERC action is not anticipated to have a substantial impact on the overall earnings of EPB. WIC intends to file a cost and revenue study with the FERC by Jan. 29, 2013. A hearing is planned in the third quarter this year.
- EPB issued $475 million of senior notes in November 2012 and repaid its credit facility borrowing.
Upcoming Organizational ChangesWith the final distribution of KMI shares from the sponsor investors to management in December 2012 (which wrapped up the KMI management-led buyout), Richard D. Kinder will continue as chairman and CEO of Kinder Morgan, but certain members of our corporate and business unit management have indicated their intention to retire or take a different role in the organization. In each case, the position will be filled by a long-time Kinder Morgan employee.