May 2012, Vol. 239 No. 5

Projects

Kinder Morgan Announces Open Season For Reversal Project

Kinder Morgan Energy Partners, L.P. recently launched a binding open season to solicit market interest for its Cochin Reversal Project which would enable the company to offer a new service to move light condensate from Kankakee County, IL to existing terminal facilities near Fort Saskatchewan, Alberta, Canada.

The project involves Kinder Morgan modifying the western leg of its Cochin Pipeline to connect to the Explorer Pipeline Company in Kankakee County and to reverse the product flow to move the condensate northwest to Fort Saskatchewan. Subject to shipper support, regulatory approvals and necessary capital improvements, light condensate shipments could begin on July 1, 2014. The project will provide 75,000 bpd of light condensate capacity on Cochin, providing a new source of supply to meet the growing demand for diluent.

Cochin is a multi-product pipeline consisting of 1,900 miles of 12-inch pipeline operating between Fort Saskatchewan, Alberta, and Windsor, Ontario. Explorer Pipeline is a nearly 1,900-mile common carrier pipeline system that transports refined petroleum products, feedstock and diluent from the Gulf Coast throughout the Midwest.

In other news, KMP signed a definitive agreement with an investment vehicle affiliated with Kohlberg Kravis Roberts & Co. L.P., (together with its affiliates, “KKR”) whereby KMP will purchase from KKR its 50% interest in the joint venture that owns the Altamont gathering, processing and treating assets (Uinta Basin in Utah) and the Camino Real Gathering System (Eagle Ford Shale in Texas) for $300 million in KMP common units. El Paso Corporation owns the other 50% of the joint venture. KMP anticipated this transaction closing subsequent to the completion of Kinder Morgan, Inc.’s acquisition of El Paso.