Kinder Morgan Texas Pipeline (KMTP) has clinched a deal to become the primary natural gas transporter for Calpine in the Texas Gulf Coast and Ship Channel markets under a 10-year, natural gas transportation and storage agreement. The deal gives Calpine access to up to 375,000 MMBtu/d of firm natural gas transportation service for a decade beginning Jan. 1, 2001.

Kinder Morgan CEO Richard D. Kinder said his company was continuing to focus its efforts on “increasing throughput by attaching additional electric load to KMTP and the rest of our extensive natural gas pipeline system.” KMTP is a subsidiary of Kinder Morgan, and both are based in Houston.

Diana Knox, Calpine’s senior vice president, said the contract “secures firm natural gas transportation and flexible balancing services in a way that mirrors our system approach to plant operations. KMTP has provided Calpine with reliable natural gas services for many years and has an established and proven track record. With our existing plants in Texas, and our plans to build additional gas-fired plants, it is essential that we have a dependable source for natural gas.”

As a Texas intrastate pipeline company, KMTP operates a 2,600-mile natural gas pipeline system that extends from South Texas to Houston along the Gulf Coast, primarily serving utility and industrial customers. In early October, KMI announced its intent to contribute KMTP to Kinder Morgan Energy Partners L.P. along with other assets for $300 million (see NGI, Oct. 9).

Based in San Jose, CA, Calpine has approximately 26,500 MW of base load capacity and 5,100 MW of peaking capacity either in operation, under construction, or in announced development and pending acquisition stages in 27 states and Alberta. Kinder Morgan operates more than 30,000 miles of natural gas and products pipelines in 26 states.

Carolyn Davis, Houston

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