HOUSTON, Oct. 5 - Kinder Morgan, Inc. (NYSE: KMI), through its subsidiary Natural Gas Pipeline Company of America (NGPL), today announced it has extended long-term, firm transportation and storage contracts with Northern Illinois Gas Company (Nicor) and BP Canada Energy Marketing (BP). Combined, the contracts represent approximately 1.1 million dekatherms per day (Dth/d) of firm transportation service and 52.5 billion cubic feet (Bcf) of firm storage capacity.
"We are pleased to enter into these long-term agreements, which demonstrate NGPL's ongoing success in renewing key contracts with valued customers," said Chairman and CEO Richard D. Kinder. "NGPL's proven track record in renewing existing contracts reflects our commitment to customer service and clearly demonstrates that we are meeting the needs of our shippers by providing safe, reliable and efficient natural gas service." Kinder added that virtually all of the capacity on NGPL's system is sold out through the 2005-06 heating season.
Under the terms of the transportation agreement with Nicor, which extends into the first quarter of 2009, NGPL will provide its largest shipper with up to 917,865 Dth/d of firm transportation service. The new agreement replaces a contract that was due to expire March 31, 2006. In addition, the two companies have extended firm storage contracts totaling 42 Bcf that were scheduled to expire March 31, 2006, and March 31, 2007. A total of 16.5 Bcf has been extended until March 31, 2009, with the remaining 25.5 Bcf extended until March 31, 2010.
As part of the agreement with BP, NGPL will provide as much as 200,000 Dth/d of firm transportation capacity through April 30, 2007.
NGPL, which is expected to contribute approximately 39 percent of KMI's projected cash flow in 2005, is a 9,800-mile pipeline system with peak deliverability of 5.8 Bcf per day and 243 Bcf of working gas storage capacity. NGPL is the largest transporter of natural gas to the high-demand Chicago market.
Kinder Morgan, Inc. is one of the largest energy transportation and storage companies in America, operating more than 35,000 miles of natural gas and products pipelines and approximately 145 terminals. Kinder Morgan, Inc. owns the general partner interest of Kinder Morgan Energy Partners, L.P. (NYSE: KMP), one of the largest publicly traded pipeline limited partnerships in the United States. Combined, the two companies have an enterprise value of approximately $31 billion.
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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.
