New KMP LNG Pipeline Project Receives Support From Total and Chevron

Kinder Morgan Energy Partners says that Total and Chevron have signed binding precedent agreements for 100 percent of the initial capacity for a term of 20 years on the proposed Kinder Morgan Louisiana Pipeline. Total and Chevron were awarded all of the capacity in a recent open season.

The $490 million project involves construction of a new interstate natural gas pipeline that will provide 3.2 billion cubic feet per day (Bcf/d) of take-away capacity from the Cheniere Sabine Pass liquefied natural gas (LNG) plant now under construction in Cameron Parish, La. As designed, the 137-mile pipeline would extend to Evangeline Parish, La., and interconnect with various interstate and intrastate pipelines.

"We are pleased that Total and Chevron have chosen to participate as anchor shippers on the Kinder Morgan Louisiana Pipeline project, which will play an important role as America looks to LNG to help meet its future energy needs," said KMP Chairman and CEO Richard D. Kinder. "The transportation of regasified LNG is one of the megatrends we are actively pursuing and this project represents an exciting growth opportunity for Kinder Morgan."

The new pipeline will consist of two segments: 1) a 137-mile large-diameter pipeline with firm capacity of about 2.0 Bcf/d connecting to various interstate and intrastate pipelines within Louisiana; and 2) a one-mile pipeline with firm capacity of about 1.2 Bcf/d connecting to Natural Gas Pipeline Company of America (NGPL), a subsidiary of Kinder Morgan, Inc. As a new interstate pipeline, the Kinder Morgan Louisiana Pipeline will be subject to Federal Energy Regulatory Commission jurisdiction. Depending on regulatory approvals, the new pipeline is expected to be in service as early as the first quarter of 2009.