Press release from Business Wire
Trans Mountain Updates Customer Commitments for Proposed Expansion Project
Thursday, January 10, 2013
CALGARY, Alberta (Business Wire) -- Trans Mountain Pipeline ULC (Trans Mountain), operated by Kinder Morgan Canada Inc. and owned by Kinder Morgan Energy Partners, L.P. (NYSE: KMP), today announced an update to the scope of its proposed expansion of the Trans Mountain Pipeline. As a result of a recently completed supplemental open season process, new long-term contracts have been signed, bringing the total volume of committed shippers to approximately 700,000 barrels per day (bpd). These additional commitments will result in an increase in the proposed expansion capacity from 750,000 bpd to 890,000 bpd. The expansion represents a capital investment of $5.4 billion and will complete the twinning of the existing pipeline from Strathcona County, Alberta, to Burnaby, British Columbia.
“Thirteen customers in the Canadian producing and oil marketing business have now signed binding, long-term contracts, which demonstrates the need for this proposed expansion that will serve both existing and new markets,” said Ian Anderson, president of Kinder Morgan Canada. The companies consist of BP Canada Energy Trading Company, Canadian Natural Resources, Canadian Oil Sands Limited, Cenovus Energy Inc., Devon Canada Corporation, Husky Energy Marketing Inc., Imperial Oil Limited, Nexen Marketing Inc., Statoil Canada Ltd., Suncor Energy Marketing Inc., Suncor Energy Products Partnership, Tesoro Refining & Marketing Company and Total E&P Canada Ltd. Trans Mountain applied to the National Energy Board (NEB) in 2012 for approval of the toll methodology that would govern an expanded Trans Mountain pipeline and expects a decision by mid-2013.
“Trans Mountain has an existing footprint, established relationships and a superb safety record,” Anderson said. “Over the next several months, we'll be doing additional engineering work and studies to assess how the increased capacity will impact the scope of the project. We will continue our open and inclusive engagement program already underway with landowners, communities and Aboriginal Groups.”
Trans Mountain expects to file a Facilities Application with the National Energy Board (NEB) in late 2013, for authorization to build and operate the necessary facilities for the proposed expansion. The Application will include the environmental, socio-economic, Aboriginal engagement, landowner and public consultation and engineering components and initiate a comprehensive regulatory and public review process. If approved, the project would be operational in 2017.
For almost 60 years, the 1,150-km Trans Mountain pipeline system has been safely and efficiently providing the only West Coast access for Canadian oil products, including the majority of the gasoline supplied to the interior and south coast of British Columbia. For more information, please visit www.transmountain.com.
Kinder Morgan Energy Partners, L.P. (NYSE: 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 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, L.P. (NYSE: EPB), along with limited partner interests in KMP, and EPB and shares in Kinder Morgan Management, LLC (NYSE: KMR). 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 results to differ materially from those in the forward-looking statements herein include those enumerated in Kinder Morgan's reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, Kinder Morgan undertakes no obligation to update or review any forward-looking statement because of new information, future events or other factors. Because of these uncertainties, readers should not place undue reliance on these forward-looking statements.
Trans Mountain Pipeline ULC
Media Relations, 1 (855) 908-9734 or (604) 908-9734
Kinder Morgan Energy Partners, L.P.
Mindy Mills Thornock, (713) 369-9490