Definitive Agreements signed by JV Partners;
Sufficient Commitments Achieved to Move Forward with the
Project
Kinder Morgan Texas Pipeline LLC (KMTP), a subsidiary of Kinder
Morgan, Inc. (NYSE: KMI), DCP Midstream, LP (NYSE: DCP) (DCP
Midstream) and an affiliate of Targa Resources Corp. (NYSE: TRGP)
(Targa) today announced a final investment decision to proceed with
the Gulf Coast Express Pipeline Project (GCX Project) after having
executed definitive joint venture agreements and having secured
sufficient firm transportation agreements with shippers.
Approximately 85 percent of the project capacity is subscribed and
committed under long-term, binding transportation agreements, and
the partners expect that the remaining capacity will be subscribed
by early 2018.
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Shippers that have committed to the project include, but are not
limited to, the following: DCP Midstream, Targa, Apache Corporation
and Pioneer Natural Resources Company. KMTP also has committed
volumes that are backstopped by a long-term purchase agreement that
locks in the equivalent transport fee on the pipeline.
The approximately $1.7 billion GCX Project is designed to
transport up to 1.92 billion cubic feet per day (Bcf/d) of natural
gas. The GCX Project Mainline portion consists of approximately 82
miles of 36-inch pipeline and 365 miles of 42-inch pipeline
originating at the Waha Hub near Coyanosa, Texas in the Permian
Basin and terminating near Agua Dulce, Texas. Additionally, the
Midland Lateral portion consists of approximately 50 miles of
36-inch pipeline and associated compression, connecting with the
GCX Project Mainline.
The project is expected to be in service in October 2019,
pending the receipt of necessary regulatory approvals. As
previously announced, KMI will build, operate and own a 50 percent
interest in the GCX Project, and DCP Midstream and Targa will each
hold a 25 percent equity interest in the project. In addition to
their transportation agreements, shipper Apache Corporation has an
option to purchase up to a 15 percent equity stake in the project
from Kinder Morgan.
“We are excited to be moving forward on this much-needed
infrastructure project, with construction planned to commence in
the first quarter of 2018,” said Kinder Morgan Natural Gas
Midstream President Duane Kokinda. “We’re very pleased to have
secured the commitments needed for all parties to proceed. The
remaining available capacity continues to be marketed to interested
shippers and may be offered as part of a binding open season in
January 2018. With this important milestone reached, the project is
now included in Kinder Morgan’s backlog.”
Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy
infrastructure companies in North America. It owns an interest in
or operates approximately 84,000 miles of pipelines and
155 terminals. KMI’s pipelines transport natural gas, refined
petroleum products, crude oil, condensate, CO2 and other products,
and its terminals transload and store petroleum products, ethanol
and chemicals, and handle products such as steel, coal and
petroleum coke. It is also a leading producer of CO2 that we and
others use for enhanced oil recovery projects primarily in the
Permian basin. For more information please visit
www.kindermorgan.com.
DCP Midstream, LP (NYSE: DCP) is a midstream master limited
partnership, with a diversified portfolio of assets, engaged in the
business of gathering, compressing, treating, processing,
transporting, storing and selling natural gas; producing,
fractionating, transporting, storing and selling NGLs and
recovering and selling condensate. DCP owns and operates more than
60 plants and 64,000 miles of natural gas and natural gas liquids
pipelines, with operations in 17 states across major producing
regions and leads the midstream segment as the largest natural gas
liquids producer, the largest natural gas processor and one of the
largest marketers in the U.S. Denver, Colorado based DCP is managed
by its general partner, DCP Midstream GP, LP, which is managed by
its general partner, DCP Midstream GP, LLC, which is 100% owned by
DCP Midstream, LLC. DCP Midstream, LLC is a joint venture between
Phillips 66 and Enbridge. For more information, please visit
www.dcpmidstream.com.
Targa Resources Corp. (NYSE: TRGP) is a leading provider of
midstream services and is one of the largest independent midstream
energy companies in North America. Targa owns, operates, acquires,
and develops a diversified portfolio of complementary midstream
energy assets. The Company is primarily engaged in the business of
gathering, compressing, treating, processing and selling natural
gas; storing, fractionating, treating, transporting, and selling
NGLs and NGL products, including services to LPG exporters;
gathering, storing, and terminaling crude oil; storing,
terminaling, and selling refined petroleum products. For more
information, please visit www.targaresources.com.
Important Information Relating to
Kinder Morgan’s Forward-Looking Statements
This news release includes forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995 and Section 21E of the Securities and Exchange Act of 1934.
Generally the words “expects,” “believes,” anticipates,” “plans,”
“will,” “shall,” “estimates,” and similar expressions identify
forward-looking statements, which are generally not historical in
nature. 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 any such forward-looking statements will
materialize. Important factors that could cause actual results to
differ materially from those expressed in or implied from these
forward-looking statements include the risks and uncertainties
described in Kinder Morgan’s reports filed with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for
the year-ended December 31, 2016 (under the headings “Risk Factors”
and “Information Regarding Forward-Looking Statements” and
elsewhere) and its subsequent reports, which are available through
the SEC’s EDGAR system at www.sec.gov and on our website at
ir.kindermorgan.com. 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 any
forward-looking statement because of new information, future events
or other factors. Because of these risks and uncertainties, readers
should not place undue reliance on these forward-looking
statements.
Important Information Relating to DCP
Midstream’s Forward-Looking Statements
This news release includes forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995 and Section 21E of the Securities and Exchange Act of 1934.
Generally the words “expects,” “believes,” anticipates,” “plans,”
“will,” “shall,” “estimates,” and similar expressions identify
forward-looking statements, which are generally not historical in
nature. 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 DCP Midstream believes that these forward-looking
statements are based on reasonable assumptions, it can give no
assurance that any such forward-looking statements will
materialize. Important factors that could cause actual results to
differ materially from those expressed in or implied from these
forward-looking statements include the risks and uncertainties
described in DCP Midstream’s reports filed with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for
the year-ended December 31, 2016 (under the headings “Risk Factors”
and “Information Regarding Forward-Looking Statements” and
elsewhere) and its subsequent reports, which are available through
the SEC’s EDGAR system at www.sec.gov and on our website under the
Investors tab at www.dcpmidstream.com. Forward-looking statements
speak only as of the date they were made, and except to the extent
required by law, DCP Midstream undertakes no obligation to update
any forward-looking statement because of new information, future
events or other factors. Because of these risks and uncertainties,
readers should not place undue reliance on these forward-looking
statements.
Important Information Relating to
Targa’s Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements, other than statements of
historical facts, included in this press release that address
activities, events or developments that Targa expects, believes or
anticipates will or may occur in the future are forward-looking
statements. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
uncertainties, factors and risks, many of which are outside Targa's
control, which could cause results to differ materially from those
expected by management of Targa. Such risks and uncertainties
include, but are not limited to, the timing and extent of changes
in commodity prices, interest rates and demand for services, the
level and success of crude oil and natural gas drilling around
assets, the timing and success of business development efforts,
ability to access the capital markets, the amount of collateral
required to be posted from time to time in transactions, success in
risk management activities, the credit risk of customers, changes
in laws and regulations, weather and other uncertainties. These and
other applicable uncertainties, factors and risks are described
more fully in Targa's Annual Report on Form 10-K for the year ended
December 31, 2016 and other reports filed with the Securities and
Exchange Commission. Targa undertakes no obligation to update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
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KMI Media RelationsMelissa Ruiz(713) 369-8060melissa_ruiz@kindermorgan.comorKMI Investor
Relations(713)
369-9490km_ir@kindermorgan.comwww.kindermorgan.comorDCP Media
RelationsRoz Elliott(303) 605-1707www.dcpmidstream.comorDCP
Investor RelationsIrene Lofland(303)
605-1822www.dcpmidstream.comorTarga Investor and Media
RelationsSanjay Lad(713)
584-1133investorrelations@targaresources.comwww.targaresources.com
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