BP Signs Natural Gas Agreement with Kinder Morgan
BP Energy Company and subsidiaries of Kinder Morgan Energy Partners, L.P., have entered into agreements that provide BP with natural gas transportation, storage and gas supply on Kinder Morgan's Texas intra-state pipeline systems.
The agreements comprise an important step in BP's growth strategy as one of North America's leading energy marketing companies.
They will enable BP Energy to gain access to up to one billion cubic feet per day (bcf/d) of natural gas transportation capacity and up to 19 bcf of storage capacity on the Kinder Morgan Tejas and Kinder Morgan Texas Pipeline systems.
Texas represents a major gas and power market with nearly ten percent of total US current natural gas demand. It is also a market proximate to BP's rapidly growing gas production activities in the Gulf of Mexico and the state is home to a significant BP integrated refining and petrochemical complex.
BP provides its customers with a broad range of natural gas supply and other energy services, and will now have enhanced ability to provide flexible supplies to industrial customers and power generators.
"This will strengthen BP's full service energy marketing and customer service capabilities along the Texas Gulf Coast, especially in the key Houston and Beaumont/Port Arthur markets. It will allow BP to serve customers more effectively as we gain supply, balancing and scheduling flexibility and scale. It builds upon our strong, growing production base in the United States, particularly in the US Gulf Coast and deepwater," explained Tony Fountain, President of BP Energy.
The agreements will come into force on September 1, 2002.