Tag Archives: KMP

Business, Finance, Occupation & Industry

Kinder Morgan Energy Partners to Make Significant Investment in Chemical Industry

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By Business Wirevia The Motley Fool

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Kinder Morgan Energy Partners to Make Significant Investment in Chemical Industry

HOUSTON–(BUSINESS WIRE)– Kinder Morgan Energy Partners, L.P. (NYS: KMP) today announced that KMP will invest approximately $58 million to expand its chemical storage capacity. KMP has entered into a long-term contract with Methanex Corporation (NAS: MEOH) to support the construction of methanol storage capacity near Kinder Morgan‘s Geismar Liquids Terminal (GLT) in Geismar, La. Kinder Morgan will build, own and operate the storage tanks and related infrastructure, including improvements to its existing dock at GLT. The assets will provide critical marine, rail and truck access in support of a 1 million tonne per year methanol production plant being relocated by Methanex from Chile, South America. The terminal infrastructure is expected to be in service during the second half of 2014, coinciding with the anticipated startup of the relocated plant.

KMP has also acquired Quality Carriers, Inc.’s 26-acre terminal located in Chester, S.C. The 19-tank facility currently provides storage for a single customer of 35,000 barrels and receives product by rail and distributes by truck.

“The abundance of attractively priced domestic natural gas has led to a resurgence in the chemical and manufacturing industries,” said John Schlosser, president of Kinder Morgan Terminals. “We are very pleased to be able to leverage our existing footprint in Geismar in support of Methanex’s significant capital project, and look forward to continuing to provide logistical and infrastructure solutions for Methanex and others as the renewed industrial development continues along the Gulf Coast and elsewhere. We are also pleased to be entering the public liquid terminal market in the greater Charlotte area and look forward to growing that business with new chemical customers.”

Kinder Morgan Energy Partners, L.P. (NYS: KMP) is a leading pipeline transportation and energy storage company and one of the largest publicly traded pipeline limited partnerships in America. It owns an interest in or operates approximately 44,000 miles of pipelines and 180 terminals. The general partner of KMP is owned by Kinder Morgan, Inc. (NYS: KMI) . Kinder Morgan is the largest midstream and the third largest energy company in North America with a combined enterprise value of approximately $100 billion. It owns an interest in or operates approximately 73,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMI …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Kinder Morgan Secures Additional Throughput Commitment for Condensate Processing Facility Expansion

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By Business Wirevia The Motley Fool

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Kinder Morgan Secures Additional Throughput Commitment for Condensate Processing Facility Expansion


Company to invest approximately $170 million to expand facility for second phase

HOUSTON–(BUSINESS WIRE)– Kinder Morgan Energy Partners, L.P. (NYS: KMP) today announced it has entered into a long-term, fee-based agreement with BP North America to underwrite an additional 50,000 barrels per day (bpd) of throughput capacity at the petroleum condensate processing facility Kinder Morgan is constructing near its Galena Park terminal on the Houston Ship Channel. With the new agreement, Kinder Morgan will invest an additional $170 million to add a second unit to its previously announced $200 million condensate processing facility and increase the facility’s total capacity to 100,000 bpd. The investment also includes the company building an additional 700,000 barrels of storage capacity for product being split at the facility.

“We are pleased to secure long-term contracts for all of the throughput capacity at our facility, and provide BP with the processing needed for Eagle Ford Shale production and other condensates,” said KMP Products Pipelines President Ron McClain. “Combined with our recently completed Kinder Morgan Crude Condensate (KMCC) pipeline, we are able to provide unparalleled connectivity to crude oil and clean products markets on the Texas Gulf Coast.” The transaction is expected to be immediately accretive to cash distributable to KMP unitholders upon the project’s completion in the second quarter of 2015.

Kinder Morgan‘s processing facility will split condensate into its various components, such as light and heavy naphtha, kerosene, diesel and gas oil, and can be further expanded pending additional market interest. Kinder Morgan previously announced the first phase of its processing facility when it secured the initial commitment of 25,000 bpd of capacity. The company expects to place the first unit in service in the first quarter of 2014.

Paul Reed, Chief Executive of BP‘s integrated supply and trading business, said, “BP is proud to build upon our strategic partnership with Kinder Morgan through an increased footprint in Galena Park. We believe that by accessing this additional throughput capacity we will be better placed to provide U.S. producers a full suite of services including access to the best homes for their crude and condensates. It will also enable BP to service our customers better and more efficiently manage their feedstock and product needs. BP …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Canada Is Drowning in Oil, Even With Keystone XL

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By Taylor Muckerman and Joel South, The Motley Fool

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Western Canadian Select crude from Canada‘s oil sands has been trading at a steep discount to WTI and Brent crude oils. As a result, Canadian producers such as Suncor Energy  and Talisman Energy  have been suffering. One way to reverse the trend is if these producers can gain access to the Asian markets, which command a higher price. 

Come one, Come all
That’s exactly how Kinder Morgan Energy Partners  feels right now, as it’s the company in the best position to help bring this crude to the West Coast. It also owns the only terminal on the West Coast with the ability to export this crude once it reaches the Pacific Ocean. Despite Enbridge‘s proposed Northern Gateway pipeline and the hotly contested Keystone XL pipeline, it still appears that KMP will be the dominant player in this market.

See more in the following video.

Need a closer look at the entire Kinder Morgan family?
It’s easy to forget the necessity of midstream operators that seamlessly transport oil and gas throughout the United States. Kinder Morgan is one of these operators, and one that investors should commit to memory because of its sheer size — it’s the fourth largest energy company in the U.S. — not to mention its enormous potential for profits. In The Motley Fool’s new premium research report on Kinder Morgan, our top energy analyst breaks down the company’s growing opportunity, as well as the risks to watch out for, to uncover whether it’s a buy or a sell. To determine whether this dividend giant is right for your portfolio, simply click here now to claim your copy of this invaluable investor’s resource.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Taylor Muckerman and Joel South“, contentId: “cms.23675”, contentTickers: “NYSE:TLM, NYSE:TRP, NYSE:ERF, NYSE:SU, NYSE:KMP“, …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Kinder Morgan Energy Partners Completes Sale of One-Third Interest in Express-Platte Pipeline System

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By Business Wirevia The Motley Fool

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Kinder Morgan Energy Partners Completes Sale of One-Third Interest in Express-Platte Pipeline System

HOUSTON–(BUSINESS WIRE)– Kinder Morgan Energy Partners, L.P. (NYS: KMP) , today announced that it has closed its previously announced sale of its one-third interest in the Express-Platte Pipeline System to Spectra Energy Corp for approximately $380 million pre-tax. KMP‘s joint venture partners in Canada (Ontario Teachers’ Pension Plan Board and Borealis Infrastructure, the infrastructure investment arm of the OMERS pension plan) also sold their interests in the pipeline system, as Spectra Energy Corp purchased 100 percent of Express-Platte—a 1,700-mile oil pipeline system connecting Canadian and U.S. producers to refineries in the Rocky Mountain and Midwest regions of the United States.

Based on the structure of KMP‘s investment with the Express-Platte Pipeline partners, KMP received approximately $15 million of cash flow on an annual basis from its investment, consisting primarily of debenture interest. KMP plans to redeploy the proceeds from the sale into various growth projects to further benefit its unitholders.

Kinder Morgan Energy Partners, L.P. (NYS: KMP) is a leading pipeline transportation and energy storage company and one of the largest publicly traded pipeline limited partnerships in America. It owns an interest in or operates more than 44,000 miles of pipelines and 180 terminals. The general partner of KMP is owned by Kinder Morgan, Inc. (NYS: KMI) . Kinder Morgan is the largest midstream and the third largest energy company in North America with a combined enterprise value of approximately $100 billion. It owns an interest in or operates more than 73,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMI owns the general partner interests of KMP and El Paso Pipeline Partners, L.P. (NYS: EPB) , along with limited partner interests in KMP, Kinder Morgan Management, LLC (NYS: KMR) and EPB. For more information please visit www.kindermorgan.com.

This news release includes forward-looking statements. These forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although Kinder Morgan believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Kinder Morgan Companies File 2012 Annual Reports

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By Business Wirevia The Motley Fool

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Kinder Morgan Companies File 2012 Annual Reports

HOUSTON–(BUSINESS WIRE)– Kinder Morgan, Inc. (NYS: KMI) , Kinder Morgan Energy Partners, L.P. (NYS: KMP) , Kinder Morgan Management, LLC (NYS: KMR) and El Paso Pipeline Partners, L.P. (NYS: EPB) have filed their annual reports on Form 10-K for the year ended Dec. 31, 2012, with the Securities and Exchange Commission (SEC).

Chairman and CEO Richard D. Kinder’s shareholder letters to KMI, KMP, KMR and EPB and annual reports on Form 10-K are available free of charge on the Kinder Morgan web site at www.kindermorgan.com in the Investors section.

All Kinder Morgan shareholders may also receive a hard copy of their respective annual report on Form 10-K, which includes the audited financial statements, free of charge upon request. Send requests to Kinder Morgan, Inc., Kinder Morgan Energy Partners, L.P., Kinder Morgan Management, LLC or El Paso Pipeline Partners, L.P., at the following address: 1001 Louisiana Street, Suite 1000, Houston, Texas 77002, Attention: Investor Relations.

Kinder Morgan is the largest midstream and the third largest energy company in North America with a combined enterprise value of approximately $100 billion. It owns an interest in or operates approximately 75,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. Kinder Morgan, Inc. (NYS: KMI) owns the general partner interests of Kinder Morgan Energy Partners, L.P. (NYS: KMP) and El Paso Pipeline Partners, L.P. (NYS: EPB) , along with limited partner interests in KMP and EPB and shares in Kinder Morgan Management, LLC (NYS: KMR) . For more information please visit www.kindermorgan.com.

This news release includes forward-looking statements. Although Kinder Morgan believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are enumerated in Kinder Morgan’s Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.

…read more
Source: FULL ARTICLE at DailyFinance
Business, Finance, Occupation & Industry

Kinder Morgan Energy Partners Increases Ownership Stake to 100 Percent in El Paso Natural Gas Pipeli

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By Business Wirevia The Motley Fool

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Kinder Morgan Energy Partners Increases Ownership Stake to 100 Percent in El Paso Natural Gas Pipeline and Midstream Assets

HOUSTON–(BUSINESS WIRE)– Kinder Morgan Energy Partners, L.P. (NYS: KMP) today announced that it has completed the previously announced acquisition (drop down) of 50 percent of El Paso Natural Gas Company, L.L.C. (EPNG) and 50 percent of former El Paso Midstream assets in Utah and South Texas from Kinder Morgan, Inc. (NYS: KMI) . The transaction has a total value of approximately $1.655 billion, including approximately $560 million of proportional debt at EPNG. The transaction is expected to be immediately accretive to cash available for distribution to KMP unitholders. KMP now owns 100 percent of both EPNG and the midstream assets. The transaction, which closed and is effective March 1, was approved by the independent boards of both KMI and Kinder Morgan Management, L.L.C. (NYS: KMR) .

KMP purchased the assets at about eight times 2013 EBITDA. KMP funded 10 percent of the transaction value, net of debt assumed, with KMP units valued at approximately $110 million that were issued to KMI at closing. The remaining value was funded with cash. KMI intends to use the proceeds from the dropdown to pay down debt that was associated with the May 2012 purchase of El Paso Corporation.

EPNG is a 10,200-mile pipeline system with a design capacity of about 5.6 billion cubic feet per day (Bcf/d) of gas. It transports natural gas from the San Juan, Permian and Anadarko basins to California, other western states, Texas and northern Mexico. EPNG has up to 44 Bcf of working natural gas storage capacity.

The midstream assets include Altamont gathering, processing and treating assets in the Uinta Basin in Utah and the Camino Real gathering system in the Eagle Ford shale in South Texas. The Altamont System has over 1,200 miles of pipeline infrastructure, over 450 well connections with producers, and it operates a processing plant with a design capacity of over 60 million cubic feet per day (MMcf/d) of gas being expanded to 80 MMcf/d and a 5,600 barrel per day (bpd) natural gas liquids fractionator. The Camino Real Gathering System has 150 MMcf/d of gas gathering capacity and 110,000 bpd of oil gathering capacity.

In connection with the transaction, BofA Merrill Lynch provided certain financial advisory services to the board of directors of Kinder Morgan, Inc. Greenhill & Co., LLC provided certain financial advisory services to the conflicts and audit committee of the board of directors …read more
Source: FULL ARTICLE at DailyFinance

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Kinder Morgan Doubles Down On Shale With Copano Acquisition

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By Trefis Team, Contributor   Kinder Morgan Energy Partners announced that it will be acquiring natural gas pipeline operator Copano Energy LLC in an all-stock deal valued at around $5 billion, including the assumption of debt. We believe that the deal is likely to be beneficial to KMP since it gives the firm access to gas gathering, processing and transmission infrastructure at key shale gas basins in Texas, Oklahoma and Wyoming and also complements the firm’s existing transmission and storage business.
Source: FULL ARTICLE at Forbes Latest