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New KMP LNG Pipeline Project Receives Support From Total and Chevron

Posted on: Monday, 7 November 2005, 09:01 CST

HOUSTON, Nov. 7 /PRNewswire-FirstCall/ -- Kinder Morgan Energy Partners, L.P. today announced that TOTAL GAS & POWER NORTH AMERICA, INC. (Total) and Chevron U.S.A. (Chevron) have signed binding precedent agreements for 100 percent of the initial capacity for a term of 20 years on the proposed Kinder Morgan Louisiana Pipeline. Total and Chevron were awarded all of the capacity in a recent open season.

The $490 million project involves construction of a new interstate natural gas pipeline that will provide 3.2 billion cubic feet per day (Bcf/d) of take-away capacity from the Cheniere Sabine Pass liquefied natural gas (LNG) plant now under construction in Cameron Parish, La. As designed, the 137-mile pipeline would extend to Evangeline Parish, La., and interconnect with various interstate and intrastate pipelines.

"We are pleased that Total and Chevron have chosen to participate as anchor shippers on the Kinder Morgan Louisiana Pipeline project, which will play an important role as America looks to LNG to help meet its future energy needs," said KMP Chairman and CEO Richard D. Kinder. "The transportation of regasified LNG is one of the megatrends we are actively pursuing and this project represents an exciting growth opportunity for Kinder Morgan."

The new pipeline will consist of two segments: 1) a 137-mile large-diameter pipeline with firm capacity of about 2.0 Bcf/d connecting to various interstate and intrastate pipelines within Louisiana; and 2) a one-mile pipeline with firm capacity of about 1.2 Bcf/d connecting to Natural Gas Pipeline Company of America (NGPL), a subsidiary of Kinder Morgan, Inc. . As a new interstate pipeline, the Kinder Morgan Louisiana Pipeline will be subject to Federal Energy Regulatory Commission jurisdiction. Depending on regulatory approvals, the new pipeline is expected to be in service as early as the first quarter of 2009.

Kinder Morgan Energy Partners, L.P. is one of the largest publicly traded pipeline limited partnerships in America. KMP owns or operates more than 25,000 miles of pipelines and approximately 145 terminals. Its pipelines transport more than 2 million barrels per day of gasoline and other petroleum products and up to 8.4 billion cubic feet per day of natural gas. Its terminals handle over 80 million tons of coal and other dry-bulk materials annually and have a liquids storage capacity of approximately 65 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 and storage companies in America. Combined, the two companies have an enterprise value of approximately $31 billion.

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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, Rick Rainey, +1-713-369-9452, 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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