Kinder Morgan Gets Under Way with the KM Rancho Pipeline Project in Texas

---

Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Kinder Morgan Energy Partners LP (Houston Texas) (NYSE:KMP) is currently converting a 172-mile pipeline from oil to natural gas transportation service. Kinder Morgan purchased the 24" diameter pipeline from TEPPCO Partners LP (Houston Texas) (NYSE:TPP) in December of 2003 and is investing $33 million to purchase the pipeline, convert it to natural gas use and construct an additional five-mile 20" diameter lateral to connect with Austin Energy's (Austin Texas) Sand Hill Power Plant (PLANT 1048946), which is being expanded from 180 to 480 megawatts (PEC 01008574).

Originating in Katy, Texas the Rancho pipeline project will add an additional 170 mmscfd of natural gas to the Austin market when completed in the summer of 2004. Kinder Morgan has selected Universal Ensco Incorporated (Houston Texas) to oversee the pipeline testing and construction.

The scope of the contract includes disconnecting all pump stations and existing mainline valves & fittings from the 172-mile segment and install new mainline, tap valve. Universal Ensco will also remediate exposed pipeline areas, inspect shorted casings at road crossings, install metering equipment and replace pipeline segments in order to ensure safe pipe wall thickness. Universal Ensco will complete the conversion work with pipeline cleaning, hydro testing, drying and pressurizing the line. By completion construction work will have been performed at over fifty sites, encompassing the entire length of the pipeline.

After commissioning of the Rancho Pipeline operation of the line will fall under Kinder Morgan's Texas Interstate Pipeline Group, which already operates 5,500-miles of pipe with a peak capacity of approximately 4.8 Bcf/d. The general partner of Kinder Morgan Energy Partners LP is owned by Kinder Morgan Incorporated (Houston Texas) (NYSE:KMI) and is of the largest energy transportation & storage companies in the US. Combined the companies total over 35,000-miles of pipeline and 22 billion in assets.