Kinder Morgan Energy Planning to Add New Pipeline Capacity in Western Texas

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Kinder Morgan Energy Partners L.P. (NYSE:KMP) (Houston Texas) is in the process of finalizing contracts for a new natural gas pipeline. The proposed Kinder Morgan West Texas Pipeline would entail the construction of 196-miles of 24" diameter transmission pipeline running from Kermit in Winkler County to Hudspeth County Texas. To supply compression a new compressor station ranging in horsepower from 9,000 to 12,400 would be constructed near Kermit utilizing multiple Caterpillar 3616 internal combustion engines.

The $149 million pipeline will have a capacity of 300mmscfd and will provide gas producers in the Permian Basin with additional firm transportation outlets and at the same time add a competitive line for shippers in the El Paso Texas area. Kinder Morgan plans interconnects with the Natural Gas Pipeline Company of America, which is a subsidiary of Kinder Morgan Incorporated as well as interconnects with Transwestern Pipeline Company and a delivery point with El Paso Natural Gas's mainline at its Hueco compressor station in Hudspeth County Texas.

Construction on the new pipeline could begin as early as October of 2003 with a targeted in-service date of June of 2004. In other sectors Kinder Morgan Energy Partners has announced open seasons for expanded capacity on its Trailblazer and TransColorado pipelines as well as a new 455-mile pipeline to serve the Phoenix Arizona area. In the terminal acquisition sector Kinder Morgan has announced plans to invest $43 million.

Kinder Morgan Energy Partners L. P. operates over 25,000 miles of pipelines transporting over two million barrels per day in refined petroleum products and up to 7.8 Bcf/d of natural gas. Its 70+ terminals handle over 60 million dry goods annually as well as storage capacity for over 55 million barrels of petroleum products. The general partner of Kinder Morgan Energy Partners L.P. is owned by Kinder Morgan Incorporated (NYSE:KMI) located in Houston Texas.