HOUSTON, Oct. 15, 2002 — Kinder Morgan Inc., through its subsidiary Natural Gas Pipeline Company of America (NGPL), Tuesday announced it has extended long-term, firm-transportation and storage contracts with MidAmerican Energy Company.
Effective Dec. 1, 2002, NGPL will provide MidAmerican, a subsidiary of the privately held MidAmerican Energy Holdings Company, with up to 115,000 MMBtu per day of firm-transportation service. The new agreement, which will continue through Nov. 30, 2004, represents an increase over the current level of 100,000 MMBtu per day. The existing agreement was due to expire Nov. 30, 2002.
NGPL and MidAmerican have also entered into an agreement to extend a firm- storage contract totaling 10 billion cubic feet for an additional two years through Nov. 30, 2005.
“These contracts will provide NGPL with another source of stable, fee- based income and continue the long-standing relationship that we have with MidAmerican, our largest customer in Iowa,” said Richard D. Kinder, chairman and CEO of KMI. “Renewing contracts with existing customers is one of the cornerstones of our success, and NGPL President Deb Macdonald and her team continue to perform an outstanding job in this area.”
Kinder added that NGPL has now extended firm service agreements with Nicor, WE Energies, Nipsco and MidAmerican which represent approximately 45 percent of its firm capacity available to the Chicago area market. In addition to renewing these key contracts, NGPL recently completed construction of a lateral pipeline project to extend natural gas transportation service into the metro area east of St. Louis.
NGPL, which is expected to contribute more than 40 percent of KMI’s expected cash flow this year, is a 10,000-mile natural gas pipeline system with peak deliverability of 5.7 billion cubic feet per day.
Kinder Morgan, Inc. is one of the largest energy transportation and storage companies in America, operating more than 35,000 miles of natural gas and products pipelines. It also has significant retail distribution, electric generation and terminal assets. Kinder Morgan, Inc. owns the general partner interest of Kinder Morgan Energy Partners, L.P., the largest publicly traded pipeline limited partnership in the U.S. in terms of market capitalization. Combined, the two companies have an enterprise value of approximately $17 billion.
Source: Kinder Morgan, Inc.