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Kinder Morgan Energy Partners to Invest Approximately $195 Million to Expand Liquids Terminals in Texas

Posted on: Monday, 11 September 2006, 12:00 CDT

HOUSTON, Sept. 11 /PRNewswire-FirstCall/ -- Kinder Morgan Energy Partners, L.P. today announced major expansions at its liquids terminals in Texas that will provide additional infrastructure to help meet the growing need for more storage capacity along the Gulf Coast for refined petroleum products. The investment of approximately $195 million will include the construction of new storage tanks at KMP's Pasadena and Galena Park terminals on the Houston Ship Channel, an additional cross-channel pipeline to increase connectivity between the two terminals, a new ship dock at Galena Park, and an additional bay at the company's Jefferson Street truck-rack facility.

KMP Terminals President Jeff Armstrong said, "This substantial investment will enable the company to provide additional services to customers, improve efficiencies and generate incremental fee-based income. It is important to note that we will be able to carry out these expansions while still maintaining air emissions from these facilities at current levels."

The expansions are supported by long-term customer commitments and will result in 3.4 million barrels of additional tank storage capacity at the Pasadena and Galena Park terminals. Construction will begin this month and all of the projects are expected to be completed by spring of 2008.

Armstrong noted that one of the unique aspects of the expansion is an agreement KMP has with Green Earth Fuels to build six tanks at Galena Park solely for the purpose of storing biodiesel. KMP will receive a fee for storing and transferring the alternative fuel.

The Galena Park and Pasadena terminals are the western Gulf Coast refining community's central interchange point. Currently the complex has almost 20 million barrels of storage capacity and is connected via pipeline to 14 refineries, four petrochemical plants and 10 major outbound pipelines. In addition, the facility currently has four ship docks and seven barge docks for inbound and outbound movement of products.

Kinder Morgan Energy Partners, L.P. is one of the largest publicly traded pipeline limited partnerships in America and owns or operates more than 27,000 miles of pipelines and approximately 145 terminals. Its pipelines transport more than 2 million barrels/day of gasoline and other petroleum products and up to 9 billion cubic feet/day of natural gas, and its terminals handle over 80 million tons of coal and other bulk materials annually and have a liquids storage capacity of about 70 million barrels for petroleum products and chemicals. KMP is also the leading provider of CO2 for enhanced oil recovery projects in the United States.

The general partner of KMP is owned by Kinder Morgan, Inc. , one of the largest energy transportation, storage and distribution companies in North America. Combined, the two companies have an enterprise value of more than $35 billion.

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.

Kinder Morgan Energy Partners, L.P.

CONTACT: Media Relations, Helen Wells, +1-303-914-4538, or InvestorRelations, Mindy Mills, +1-713-369-9490, both of Kinder Morgan EnergyPartners, L.P.

Web site: http://www.kindermorgan.com/

Source: PRNewswire-FirstCall

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