HOUSTON--(BUSINESS WIRE)--Midcontinent Express Pipeline LLC (MEP), a 50/50 joint venture between Kinder Morgan Energy Partners, L.P. (NYSE:KMP) and Energy Transfer Partners, L.P. (NYSE:ETP), completed a successful binding open season for a 300,000 dekatherms per day expansion of a portion of MEP’s planned pipeline system. The capacity was awarded to two shippers, Chesapeake Energy Marketing, Inc. and National Fuel Marketing Company, LLC. Subject to MEP’s application and receipt of the necessary regulatory approvals, the expansion project will take the main segment of MEP’s Zone 1 from the previously sold out capacity of 1.5 billion cubic feet per day (Bcf/d) to a total capacity of 1.8 Bcf/d. The main segment originates near the planned interconnect locations with Energy Transfer’s Houston Pipe Line system and Kinder Morgan’s Natural Gas Pipeline Company of America in the Paris, Texas, area and terminates near the planned interconnect location with Columbia Gulf Transmission near Waverly, La. In addition, MEP was successful in subscribing the existing capacity available on the 30-inch segment from the Bennington, Okla., area to the Paris, Texas, area.
“MEP is extremely delighted with the results of the MEP expansion open season,” said Steve Kean, president of Kinder Morgan’s natural gas pipelines. “We now have 1.8 Bcf/d of binding long-term contracts supporting the MEP project which will assure that the participating customers have sufficient pipeline capacity to accommodate their future needs. MEP can also be expanded up to 2.0 Bcf/d with more compression if demand for additional capacity is needed.”
“The overwhelming success of this project demonstrates the continued demand for pipeline infrastructure, which is necessary to connect the rapidly expanding natural gas production areas to consumers throughout the United States,” said Energy Transfer senior vice president Lee Hanse. “Energy Transfer is pleased to see the success of this pipeline, and we will continue to pursue pipeline projects requested by producers and markets throughout the country.”
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 25,000 miles of pipelines and 165 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle bulk materials like coal and petroleum coke. 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 $22 billion. The general partner of KMP is owned by Knight, Inc., (formerly Kinder Morgan Inc.), a private company.
Energy Transfer Partners, L.P. (NYSE:ETP) is a publicly traded partnership owning and operating a diversified portfolio of energy assets. ETP has pipeline operations in Arizona, Colorado, Louisiana, New Mexico and Utah, and owns the largest intrastate pipeline system in Texas. ETP’s natural gas operations include intrastate natural gas gathering and transportation pipelines, natural gas treating and processing assets and three natural gas storage facilities located in Texas. These assets include approximately 14,300 miles of intrastate pipeline in service, with approximately 500 miles of intrastate pipeline under construction, and 2,400 miles of interstate pipeline. ETP is also one of the three largest retail marketers of propane in the United States, serving more than one million customers across the country.
Energy Transfer Equity, L.P. (NYSE:ETE) owns the general partner of Energy Transfer Partners and approximately 62.5 million ETP limited partners units.
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.