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KMP Completes First Commercial Shipment of Biodiesel in U.S. on Plantation Pipe Line

HOUSTON--(BUSINESS WIRE)--Jun. 30, 2009-- Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced that Plantation Pipe Line Company is the first pipeline company in the United States to transport biodiesel for commercial purposes. Plantation completed the first transmarket commercial shipment of blended 5 percent biodiesel (B5) on a mainline segment of the pipeline. The company injected B99 into ultra low sulfur diesel at Plantation’s Collins, Miss., pump station and breakout tank farm creating a 15,000 barrel batch of B5 that it then shipped to marketing terminals located in Athens, Ga., and Roanoke, Va. Upon receipt of the product at both facilities, Kinder Morgan performed testing on samples from the batch and found that the samples arrived on specification.

“We believe the blending and transportation of biodiesel by pipeline will have significant advantages for our customers when compared to the alternative of installing capital intensive blending facilities at individual marketing terminals,” said KMP Products Pipeline President Tom Bannigan. “Kinder Morgan is responding to customers’ needs for blending and transporting biodiesel to meet federal regulatory requirements.”

In addition to Athens and Roanoke, the company will be able to move blended B5 to the following markets along Plantation:

  • Birmingham and Oxford, Ala.
  • Bremen and Atlanta, Ga.
  • Belton and Spartanburg, S.C.
  • Charlotte and Greensboro, N.C.

Kinder Morgan also is optimistic that it will be able to ship blended biodiesel on Plantation’s Tennessee lateral serving both Chattanooga and Knoxville. The company believes jet fuel currently moving on this lateral can readily be supplied into these markets by means other than Plantation which would open the door for shipment of a blended biodiesel on this lateral line.

Bannigan added, “Kinder Morgan is initially focusing on moving blended biodiesel on segments of the Plantation system that transport only gasoline and diesel because of concerns about possible “trailback” of biodiesel into subsequent jet fuel batches. If we can work through these issues, we will evaluate the possibility of moving blended biodiesel to every market on the Plantation system.”

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates more than 26,000 miles of pipelines and 170 terminals. Its 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. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of over $20 billion. The general partner of KMP is owned by Knight Inc. (formerly Kinder Morgan, Inc.), a private company.

This news release includes forward-looking statements. Although Kinder Morgan believes that its expectations 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 are enumerated in Kinder Morgan’s Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.

Source: Kinder Morgan Energy Partners, L.P.

Kinder Morgan Energy Partners, L.P.
Media Relations
Emily Mir Thompson, 713-369-8060
or
Investor Relations
Mindy Mills, 713-369-9449
www.kindermorgan.com