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Kinder Morgan Seeks Start of Pre-Filing Process for Louisiana Pipe Project

Kinder Morgan Louisiana Pipeline LLC has asked FERC to begin the pre-filing process for its proposed pipeline that would provide service from Cheniere LNG's 2.6 Bcf/d Sabine Pass terminal now under construction in Cameron Parish, LA.

The pipeline company, a unit of Houston-based Kinder Morgan Energy Partners LP, plans to invest approximately $490 million to build a natural gas transportation system that would extend about 138 miles from the Sabine Pass LNG terminal, connecting with various intrastate and interstate pipelines along the way, including affiliate Natural Gas Pipeline Company of America (NGPL).

Kinder Morgan Louisiana Pipeline said it expects file a project application in August of this year, and receive approval from the Federal Energy Regulatory Commission in June 2007. It noted construction is anticipated to begin in July 2008, with in-service slated for as early as October 2008.

The proposed pipeline would consist of two segments: a 137-mile, 42-inch diameter pipeline with a maximum firm capacity of 2.13 MMDth/d connecting to a number of pipes within Louisiana; and a one-mile, 36-inch diameter line with maximum firm capacity of 1.26 MMDth/d that would interconnect with NGPL in the vicinity of the terminal. The project also calls for the construction of a 2.2-mile, 24-inch diameter lateral connecting with Florida Gas Transmission's system in Acadia Parish, LA.

Kinder Morgan said it already has obtained prearranged conditional agreements with several shippers for the combined 3.4 MMDth/d of initial capacity.

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