HOUSTON--(BUSINESS WIRE)--Kinder Morgan, Inc. (NYSE: KMI) today announced it received approval from the Federal Energy Regulatory Commission (FERC) regarding the rates, terms and conditions of service for the proposed Palmetto Pipeline on May 1, 2015.
“We are pleased to receive FERC approval, which allows us to advance the development of this important infrastructure project supporting distribution of domestically produced petroleum products,” said Kinder Morgan Products Pipelines President Ron McClain. “This milestone brings the company one step closer to its goal of delivering low-cost additional supplies of refined petroleum products and denatured fuel ethanol to pipeline-constrained markets in the southeastern United States.”
As an example, the company estimates that the potential savings for southeastern consumers could be as high as 6 cents per gallon once Palmetto is in service versus current trucking or marine transportation.
The proposed Palmetto Pipeline will enable refined petroleum products to be transported from Baton Rouge, Louisiana, Collins and Pascagoula, Mississippi, and Belton, South Carolina, to North Augusta, South Carolina, Savannah, Georgia, and Jacksonville, Florida. The system will have a design capacity of up to 167,000 barrels per day and will consist of a segment of expansion capacity that Palmetto will lease from Plantation Pipe Line Company between Baton Rouge, Louisiana, and Belton, South Carolina. A new 360-mile pipeline from Belton, South Carolina, to Jacksonville, Florida, will also be constructed as part of the system. Pipelines are the safest and most environmentally sound way to transport refined products, and Kinder Morgan’s safety and environmental performance is significantly better than the pipeline industry average.
Kinder Morgan, Inc. (NYSE: KMI) is the largest energy infrastructure company in North America. It owns an interest in or operates approximately 84,000 miles of pipelines and 180 terminals. The company’s 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. Kinder Morgan is the largest midstream and third largest energy company in North America with an enterprise value of approximately $130 billion. For more information please visit www.kindermorgan.com.
This news release includes forward-looking statements. These forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although Kinder Morgan believes that these forward-looking statements 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 include those enumerated in Kinder Morgan’s reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, Kinder Morgan undertakes no obligation to update or review any forward-looking statement because of new information, future events or other factors. Because of these uncertainties, readers should not place undue reliance on these forward-looking statements.