Kinder Morgan Inc. (KMI) and Kinder Morgan Energy Partners LP. (KMP) said Tuesday that service has begun on two new natural gas pipelines in Texas and Colorado, and CEO Richard Kinder said the companies remain on target to reach their earnings guidance for the year at $3.71 for KMI and $2.84 per KMP distribution unit.

KMP brought online a new $30 million intrastate natural gas pipeline that runs from Katy to Austin, TX. The project involved the conversion of a 130-mile section of oil pipeline that the company acquired in Dec. 2003 and the construction of a five-mile lateral to serve a municipal power plant that is being expanded. The pipeline adds about 170 MMcf/d of incremental natural gas transportation capacity to the growing Austin market and is supported by long-term contracts with local utilities.

In Colorado, Kinder Morgan Inc. said it has completed and placed into service a $20 million, 58-mile natural gas pipeline to serve its retail customers between Montrose and Ouray. As a result, a number of communities along the route will have natural gas distribution service for the first time. Based on research, KMI’s retail business expects to add about 3,000 Western Slope customers via the new pipeline over the next five years to its more than 240,000 customer base.

“These new pipelines are part of Kinder Morgan’s plans to invest approximately $650 million this year on expansion projects that will create more energy infrastructure in the United States and generate additional cash flow for both KMP and KMI,” said CEO Richard D. Kinder. “With the first half of the year behind us, we remain on target to meet our 2004 financial goals.”

The following summarizes some of Kinder Morgan’s other expansion projects. All are KMP projects, except for TransColorado.

KMP recently placed into service its $28.4 million Cheyenne Market Center in Colorado and Nebraska, which provides natural gas suppliers in the Rocky Mountain region with 6 Bcf of storage capacity. Construction began in Oct. 2003 (see Daily GPI, Oct. 13, 2003) and service commenced July 1. The project is supported by long-term contracts, the company said.

The $33 million TransColorado expansion is expected to be completed in August and will increase firm transportation capacity on the natural gas pipeline from 300,000 Dth/d to 425,000 Dth/d. The expansion, which received Federal Energy Regulatory Commission approval in March (see Daily GPI, March 25), stretches from northwestern Colorado to northern New Mexico. The project is supported by a 10-year transportation contract with a major producer.

©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.