Kinder Morgan Energy Partners LP (NYSE: KMP) has entered into new and extended long-term transportation and storage agreements with Calpine Energy Services LP (NYSE: CPN). Under the agreements, KMP will provide up to 450,000 dekatherms per day (dth/d) of firm transportation service as well as 5 billion cubic feet (bcf) of storage capacity to serve nine of Calpine’s electric generation facilities in Texas. The service level under these new agreements represents an increase of 150,000 dth/d of transport and one bcf of storage over agreements previously in place. KMP will invest approximately $30 million to expand its Texas intrastate pipeline system in South Texas to extend service to Calpine’s Magic Valley Generating Station in Hidalgo County.
Duane Kokinda, president of KMP’s Midstream Group said, “We are extremely pleased to extend our longstanding business relationship with Calpine and we look forward to adding a ninth Calpine plant to the list of electric generation facilities in Texas that we serve.”
Kinder Morgan Energy Partners LP (NYSE: KMP) is a 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 46,000 miles of pipelines and 180 terminals. The general partner of KMP is owned by Kinder Morgan Inc. (NYSE: 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 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. KMI owns the general partner interest of KMP and El Paso Pipeline Partners LP (NYSE: EPB), along with limited partner interests in KMP, and EPB and shares in Kinder Morgan Management LLC (NYSE: KMR).