HOUSTON--(BUSINESS WIRE)--Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced it will build and operate a new 136-mile, 16-inch pipeline to transport gasoline, jet fuel and diesel from refineries in Norco, La., to an existing petroleum transportation hub in Collins, Miss., owned by Plantation Pipe Line Company. (Kinder Morgan owns 51 percent of Plantation Pipe Line Company and operates the system.) From this hub the refined petroleum products will be transported by pipeline systems, including Plantation, that serve major markets in the southeastern United States.
Kinder Morgan is partnering with Valero Energy Corp (NYSE: VLO) in this joint venture that will own Parkway Pipeline LLC. The pipeline will have an initial capacity of 110,000 barrels per day (bpd) with the ability to expand to over 200,000 bpd. The project is supported by a long-term throughput agreement with a credit worthy shipper and is expected to be accretive to cash available to KMP unitholders upon completion. Pending receipt of environmental and regulatory approvals, the approximately $220 million pipeline project is expected to be in service by mid-year 2013.
“We are delighted to work with Valero to add pipeline transportation capacity while providing all shippers with broader access to Gulf Coast refineries,” said KMP Products Pipelines President Tom Bannigan. “This project will enhance fuel supply and optionality for sourcing refined products into Southeastern markets currently served by pipeline systems such as Plantation Pipe Line Company.”
Construction of the Parkway Pipeline will follow existing utility rights-of-way wherever possible to minimize environmental impacts.
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 more than 28,000 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. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of over $33 billion. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Combined, KMI and KMP have an enterprise value of approximately $55 billion. For more information please visit www.kindermorgan.com.
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 and Energy Transfer believe that their expectations are based on reasonable assumptions, they 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 and Energy Transfer’s Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.