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Kinder Morgan Begins Open Season for Pipe Capacity from Sabine LNG Terminal Project

Kinder Morgan Energy Partners LP announced last Thursday the start of a binding open season for takeaway capacity on its Kinder Morgan Louisiana Pipeline project that would provide service from Cheniere LNG's 2.6 Bcf/d Sabine Pass terminal now under construction in Cameron Parish, LA. The open season will run through Oct. 12.

The Houston-based energy company said it plans to invest approximately $490 million to build the interstate natural gas pipeline that would extend about 137 miles from the Sabine Pass LNG terminal to Evangeline Parish, LA. It would connect with various intrastate and interstate pipelines along the way, including Kinder Morgan's Natural Gas Pipeline Co. of America system (NGPL).

The pipeline would consist of two segments: 1) a 137-mile, large-diameter pipeline with firm capacity of about 2.1 MMDth/d connecting to a number of pipelines within Louisiana; and 2) a one-mile pipeline with firm capacity of about 1.3 MMDth/d that would connect to NGPL. Kinder Morgan said it already has obtained prearranged conditional agreements with several shippers for the combined 3.4 MMDth/d of initial capacity.

Pending shipper and regulatory approvals, the Kinder Morgan Louisiana Pipeline project is expected to be in service as early as the first quarter of 2009, according to the company.

For further information about the project and open season, shippers can contact Norman Watson at (713) 369-9219 or Kim Watson at (713) 369-9233, or go to Kinder Morgan's web site at http://www.kindermorgan.com.

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