KMPT, Calpine Sign 10-Year Transport Agreement
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
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
©Copyright 2000 Intelligence Press, Inc. All rights reserved.
The preceding news report may not be republished or redistributed in whole
or in part without prior written consent of Intelligence Press, Inc.