HOUSTON and TULSA, Dec. 20, 2013 – Kinder Morgan Crude and Condensate
LLC (KMCC) and Double Eagle Pipeline LLC, a 50/50 joint venture between
Magellan Midstream Partners, L.P. (NYSE: MMP) and Kinder Morgan Energy
Partners, L.P. (NYSE: KMP), today announced that they have entered into a
long-term agreement with Anadarko Petroleum Corporation (NYSE: APC) to
transport Eagle Ford Shale production from Gardendale, Texas, in LaSalle
County, to the Houston Ship Channel via the KMCC Pipeline. Double Eagle will construct
160,000 barrels of storage capacity and a pump station at Gardendale in
addition to building an approximately 10-mile pipeline to connect the Double
Eagle Pipeline and the KMCC Pipeline in Karnes County, Texas. Double Eagle will
transport product from its new Gardendale station to the KMCC Helena station in
Karnes County. KMCC will construct 240,000 barrels of storage at its Helena
Station to move crude and condensate from the Double Eagle Pipeline to the KMCC
delivery points. Double Eagle and KMCC expect to complete construction of these
facilities in early 2015 to move production to the Houston Ship Channel.
“We believe connecting the
Double Eagle and KMCC systems will offer unique flexibility for Anadarko and
other Eagle Ford producers to access both the Corpus Christi and Houston-area
markets,” said Don Lindley, president of Natural Gas Liquids for KMP, regarding
the approximately $45 million Kinder Morgan investment. The transaction is
expected to be immediately accretive to cash distributable to MMP and KMP
unitholders upon the project’s completion.
“We are pleased that customer
demand on the Double Eagle system is continuing to grow,” said Michael Mears,
Magellan’s chief executive officer. “The increased connectivity for the Double
Eagle system is in direct response to our customers’ desire to more efficiently
supply additional condensate barrels to the Houston Ship Channel.”
The Double Eagle Pipeline
includes 140 miles of new 12-inch pipeline connecting to an existing 50-mile, 14- and
16-inch pipeline segment owned by Kinder Morgan extending from Three Rivers,
Texas, to Magellan’s marine and storage terminal in Corpus Christi, Texas. The
initial capacity of the pipeline is 100,000 barrels per day, but can be expanded
with additional pumps.
About Magellan Midstream
Partners, L.P.
Magellan Midstream Partners,
L.P. (NYSE: MMP) is a publicly traded partnership that primarily transports,
stores and distributes refined petroleum products and crude oil. The partnership
owns the longest refined petroleum products pipeline system in the country,
with access to more than 40% of the nation’s refining capacity, and can store
over 80 million barrels of petroleum products such as gasoline, diesel fuel and
crude oil. More information is available at www.magellanlp.com.
About Kinder Morgan Energy
Partners
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 more than 54,000 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 fourth largest
energy company in North America with a combined enterprise value of
approximately $105 billion. It owns an interest in or operates more than 82,000
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 interests 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.
Kinder Morgan’s
Forward-Looking Statement
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.
Magellan Midstream Partners’
Forward-Looking Statement
Portions
of this document constitute forward-looking statements as defined by federal
law. Although Magellan Midstream Partners, L.P. believes any such statements
are based on reasonable assumptions, actual outcomes may be materially
different. Among the key risk factors associated with the project that may have
a direct impact on the partnership’s results of operations and financial
condition are: (1) the ability to obtain all required permits and regulatory
approvals on time; (2) the ability to complete construction of the project on
time and at expected costs; (3) price fluctuations and overall demand for
refined petroleum products; (4) changes in tariff rates or other terms imposed
by state or federal regulatory agencies; (5) the occurrence of an operational
hazard or unforeseen interruption; (6) disruption in the debt and equity
markets that negatively impacts the ability to finance capital spending and (7)
failure of customers or vendors to meet or continue contractual obligations.
Additional information about issues that could lead to material changes in
Magellan Midstream Partners, L.P.’s performance is contained in the
partnership’s filings with the Securities and Exchange Commission. Magellan
Midstream Partners, L.P. undertakes no obligation to revise these
forward-looking statements to reflect events or circumstances occurring after
today’s date.