Press release from Business Wire
Kinder Morgan to Add 2.4 Million Barrels of New Storage Capacity at Its Edmonton Terminal
Wednesday, November 30, 2011
CALGARY, Alberta (Business Wire) -- Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced that it will invest approximately $210 million to construct seven tanks with a storage capacity of 2.4 million barrels for crude oil and condensate at its Edmonton Terminal in Strathcona County, Alberta. Kinder Morgan Canada Terminals has entered into long-term contracts with customers to support the project. Kinder Morgan subsidiary Trans Mountain Pipeline previously received National Energy Board approval to construct merchant and regulated tanks at the Edmonton facility and intends to commence construction early in 2012 following receipt of other supporting permits. It is anticipated that the new tanks will be placed in service in late 2013.
“The new tankage will provide Alberta producers, marketers and refiners additional crude oil and condensate storage options as oilsands production increases and crude oil prices remain volatile,” said Bill Henderson, vice president of Kinder Morgan Canada Terminals. “Just as importantly, the project will set the framework for two additional phases that would ultimately allow for up to 6 million barrels of dedicated storage.” Henderson added that the Edmonton location allows for unparalleled upstream feeder pipeline connectivity and access to all downstream market outlets, including direct connections into Trans Mountain Pipeline. Kinder Morgan Canada Terminals has begun seeking commercial support for the second phase of tank expansion.
“The new tanks add a very important component to Trans Mountain Pipeline's expansion plans and will provide our existing and potential customers with significant crude staging flexibility,” said Ian Anderson, president of Kinder Morgan Canada, the operator of both Trans Mountain Pipeline and the Kinder Morgan Canada Terminal located in Edmonton.
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates more than 28,000 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. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of over $35 billion. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Combined, KMI and KMP have an enterprise value of approximately $60 billion. 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.
Kinder Morgan Energy Partners, L.P.
Andrew Galarnyk, 403-514-6536
Mindy Mills Thornock, 713-369-9490