"We are delighted to purchase this pipeline, and we expect this project will be immediately accretive to cash available to unitholders once it begins operations, projected for the summer of 2004," said Richard D. Kinder, chairman and CEO of Kinder Morgan. "This project will bring needed natural gas pipeline capacity to the Austin area and will expand the fee-based services being provided by our Texas Intrastate Pipeline Group."
The 24-inch intrastate natural gas pipeline will operate between the Katy and Austin areas and will provide an additional 170 million cubic feet per day of capacity to the Austin market. Austin Energy, the city-owned electric utility, has entered into a long-term contract for firm transportation and storage services, primarily to provide gas supply to its Sand Hill power plant, which is being expanded from 180 to 480 megawatts. The local natural gas distribution company has also signed a long-term contract to support the project.
The company's Texas intrastate natural gas pipeline group consists of approximately 5,800 miles of pipeline with a peak capacity of about 5 billion cubic feet per day of natural gas and over 30 billion cubic feet of storage capacity.
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