Kinder Morgan and Cheniere Announce Long-Term Transportation and Storage Agreements
December 10 2014 - 4:05PM
Business Wire
Kinder Morgan, Inc. (NYSE: KMI) today announced that Kinder
Morgan Texas Pipeline, Kinder Morgan Tejas Pipeline and Tennessee
Gas Pipeline Company (TGP) have entered into 15-year firm
transportation agreements and a multi-year storage agreement with
Cheniere Energy, Inc. (NYSE MKT: LNG) through its subsidiary,
Corpus Christi Liquefaction, LLC. Under the agreements, KMI will
provide 550,000 dekatherms per day (Dth/d) of firm natural gas
transportation service, as well as 3 billion cubic feet (Bcf)
of natural gas storage capacity to serve the LNG export facility
being developed near Corpus Christi. The project is being designed
and permitted for up to three trains, with aggregate design
production capacity of approximately 13.5 million tonnes per annum
(mtpa) of LNG. The natural gas transportation service can be
increased to 800,000 Dth/d upon the completion of certain
conditions in the Kinder Morgan Texas Pipeline agreement.
KMI will expand its existing Texas intrastate pipeline system in
South Texas to provide 250,000 Dth/d of firm transportation and 100
percent of the storage services, and expand its TGP Pipeline to
provide 300,000 Dth/d of firm transportation from various Zone 1
receipt points near its Station 87 Pool located in Portland,
Tennessee. The construction of the facilities necessary to support
these services will be coordinated with the startup of the LNG
export facility, which is expected in 2018/2019. KMI expects to
invest approximately $187 million for this project.
“We are pleased to provide transportation and storage services
that access diverse supply basins to Corpus Christi Liquefaction
for this LNG export opportunity,” said Tom Martin, KMI’s president
of Natural Gas Pipelines. “The need for additional natural gas
transportation services continues to increase, and Kinder Morgan’s
portfolio of natural gas assets across the United States is well
positioned to serve infrastructure expansion opportunities and meet
increasing market demand.”
“This agreement builds on our existing relationship with Kinder
Morgan, which will also service a portion of our Sabine Pass
Liquefaction terminal in Louisiana, and moves us closer to securing
the supply infrastructure needed to provide natural gas to our
Corpus Christi LNG export facility,” said Corey Grindal, vice
president of Supply and Marketing for Cheniere. “Access to multiple
and diverse supply basins and an extensive pipeline network are
both important factors for securing the natural gas required to
meet our customers’ needs.”
The agreements are subject to, among other things, Corpus
Christi Liquefaction making a final investment decision to
construct the Corpus Christi Liquefaction Project.
About Kinder Morgan
Kinder Morgan, Inc. (NYSE: KMI) is the largest energy
infrastructure company in North America. It owns an interest in or
operates approximately 80,000 miles of pipelines and
180 terminals. The company’s pipelines transport natural gas,
gasoline, crude oil, CO2 and other products, and its terminals
store petroleum products and chemicals, and handle bulk materials
like coal and petroleum coke. Kinder Morgan is the largest
midstream and third largest energy company in North America with an
enterprise value of more than $125 billion. For more
information please visit www.kindermorgan.com.
About Cheniere Energy
Cheniere Energy, Inc. (NYSE MKT: LNG) is a Houston-based energy
company primarily engaged in LNG-related businesses. Its
subsidiary, Cheniere Energy Partners, L.P. (NYSE MKT: CQP), is
developing a liquefaction project adjacent to the existing
regasification facilities at the Sabine Pass LNG terminal, and will
include up to six LNG trains with aggregate design production
capacity of up to 27 mtpa. Construction has begun on the first four
LNG trains. Cheniere has also initiated a project to develop
liquefaction facilities near Corpus Christi, Texas, which will
include up to three LNG trains with aggregate design production
capacity of up to 13.5 mtpa. Upon completion of certain conditions
precedent, construction is expected to commence on the Corpus
Christi liquefaction project in early 2015. Additional information
about Cheniere Energy, Inc. may be found on its website located at
http://www.cheniere.com.
Kinder Morgan Cautionary
Language:
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.
Cheniere Energy Cautionary
Language:
This press release contains certain statements that may include
"forward-looking statements" within the meanings of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical fact, included herein are "forward-looking statements."
Included among "forward-looking statements" are, among other
things, (i) statements regarding Cheniere's business strategy,
plans and objectives, including the construction and operation of
liquefaction facilities, (ii) statements regarding our expectations
regarding regulatory authorizations and approvals, (iii) statements
expressing beliefs and expectations regarding the development of
Cheniere's LNG terminal and pipeline businesses, including
liquefaction facilities, (iv) statements regarding the business
operations and prospects of third parties, (v) statements regarding
potential financing arrangements and (vi) statements regarding
future discussions and entry into contracts. Although Cheniere
believes that the expectations reflected in these forward-looking
statements are reasonable, they do involve assumptions, risks and
uncertainties, and these expectations may prove to be incorrect.
Cheniere's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a
variety of factors, including those discussed in Cheniere's
periodic reports that are filed with and available from the
Securities and Exchange Commission. You should not place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release. Other than as required under the
securities laws, Cheniere does not assume a duty to update these
forward-looking statements.
Kinder Morgan, Inc.Media RelationsMelissa Ruiz, (713)
369-8060melissa_ruiz@kindermorgan.comorInvestor
Relations(713)
369-9490km_ir@kindermorgan.comwww.kindermorgan.comorCheniere
Energy, Inc.InvestorsRandy Bhatia, (713) 375-5479orChristina
Burke, (713) 375-5104orMediaFaith Parker, (713) 375-5663
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