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

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

Diana Knox, Calpine’s senior vice president, said the contract”secures firm natural gas transportation and flexible balancingservices in a way that mirrors our system approach to plantoperations. KMTP has provided Calpine with reliable natural gasservices for many years and has an established and proven trackrecord. With our existing plants in Texas, and our plans to buildadditional gas-fired plants, it is essential that we have adependable source for natural gas.”

As a Texas intrastate pipeline company, KMTP operates a 2,600-milenatural gas pipeline system that extends from South Texas to Houstonalong the Gulf Coast, primarily serving utility and industrialcustomers. In early October, KMI announced its intent to contributeKMTP to Kinder Morgan Energy Partners L.P. along with other assetsfor $300 million (see Daily GPI, Oct. 5).

Based in San Jose, CA, Calpine has approximately 26,500 MW ofbase load capacity and 5,100 MW of peaking capacity either inoperation, under construction, or in announced development andpending acquisition stages in 27 states and Alberta. Kinder Morganoperates more than 30,000 miles of natural gas and productspipelines in 26 states.

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