Open season extended for Utica Marcellus Texas Pipeline to Feb.
HOUSTON--(BUSINESS WIRE)--Dec. 20, 2013--
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and Targa Resources
Partners LP (NYSE: NGLS) today announced they have signed a letter of
intent to form a joint venture to construct new natural gas liquids
(NGL) fractionation facilities at Mont Belvieu, Texas, to provide
services for producers in the Utica and Marcellus Shale resource plays
in Ohio, West Virginia and Pennsylvania.
In order to allow producers and shippers sufficient time to assess their
Gulf Coast fractionation and pipeline needs, a binding open season
currently under way for the Utica Marcellus Texas Pipeline (UMTP), a
proposed joint venture between MarkWest Utica EMG, L.L.C. and KMP, will
be extended until Feb. 28, 2014. The UMTP will involve the abandonment
and conversion, subject to Federal Energy Regulatory Commission
approval, of over 1,000 miles of KMP’s existing Tennessee Gas Pipeline
system, currently in natural gas service, from Mercer, Pa., to
Natchitoches, La., and building approximately 200 miles of new pipeline
from Natchitoches to Mont Belvieu for fractionation. The facilities will
be located adjacent to Targa’s existing fractionation facilities at Mont
Belvieu and will provide fractionation services for customers of UMTP of
up to approximately 150,000 barrels per day (bpd), and potentially serve
up to 400,000 bpd of maximum pipeline capacity over time.
“The joint venture with Targa will provide our NGL pipeline customers
with a fully integrated NGL solution from the tailgate of their
processing plants in Utica and Marcellus to the ultimate consumer of the
purity products along the Gulf Coast,” said Don Lindley, president of
Natural Gas Liquids for KMP. “Targa’s market connectivity, storage, and
expertise in fractionation and in LPG export infrastructure and services
on the Gulf Coast may provide the Utica and Marcellus producers with
maximum value and optionality at the largest NGL hub in the United
“We are pleased to team up with Kinder Morgan to offer Utica and
Marcellus pipeline customers the opportunity to obtain fractionation and
related services at our expanding Mont Belvieu complex,” said Joe Bob
Perkins, Chief Executive Officer of Targa. “We believe that this
fractionation joint venture in combination with the Kinder Morgan and
MarkWest Utica EMG pipeline project provides a solid long-term liquids
solution for production growth in the Utica and Marcellus.”
About Kinder Morgan
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.
About Targa Resources Partners LP
Targa Resources Partners LP (NYSE: NGLS) is a publicly traded Delaware
limited partnership formed in October 2006 by its parent, Targa
Resources Corp. to own, operate, acquire and develop a diversified
portfolio of complementary midstream energy assets. The partnership is a
leading provider of midstream natural gas, NGL, terminaling and crude
oil gathering services in the United States. The partnership is engaged
in the business of gathering, compressing, treating, processing and
selling natural gas; storing, fractionating, treating, transporting and
selling NGL and NGL products; gathering, storing and terminaling crude
oil; and storing, terminaling and selling refined petroleum products.
The principal executive offices of Targa Resources Partners are located
at 1000 Louisiana, Suite 4300, Houston, TX 77002 and their telephone
number is 713-584-1000. For more information please go to www.targaresources.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.
Targa Resources Partners LP Cautionary Language
Certain statements in this 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 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,
weather, political, economic and market conditions, including a decline
in the price and market demand for natural gas, natural gas liquids and
crude oil, the timing and success of business development efforts; and
other uncertainties. These and other applicable uncertainties,
factors and risks are described more fully in Targa’s filings with the
Securities and Exchange Commission, including the Annual Reports on Form
10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Targa does not undertake an obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Source: Kinder Morgan Energy Partners, L.P.
Resources Partners LP
Senior Vice President, Chief Financial Officer and