Initial Capacity On Midcontinent Express Pipeline Sold Out

abarrelfull wrote on 13 Apr 2012 09:02
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April 30, 2008

Midcontinent Express Pipeline LLC (MEP), a natural gas pipeline project jointly owned by Kinder Morgan Energy Partners and Energy Transfer Partners, today announced that its initial capacity of 1.4 billion cubic feet per day is now fully subscribed by creditworthy shippers.

“MEP is delighted to have long-term binding precedent agreements in place for all of our initial capacity,” said Scott Parker, president of Kinder Morgan’s natural gas pipelines. “We are now poised to consider the expansion of our pipeline by up to an incremental 600 million cubic feet per day with additional compression to accommodate future production growth and shipper needs in the Barnett and Woodford shale formations, as well as other growing production areas in Oklahoma, Texas and Arkansas.”

MEP will strengthen the nation’s energy infrastructure by providing access to Midwest, Northeast, Mid-Atlantic and Southeast markets for growing domestic onshore supplies of clean-burning natural gas from the Barnett Shale and Bossier Sands in Texas, the Fayetteville Shale in Arkansas and the Woodford Shale in Oklahoma, as well as other new and existing sources of gas supply in the region.

“Energy Transfer Partners is excited about the initial pipeline project being fully subscribed. The timing of the MEP project is aligned with the tremendous growth and development of these shale plays, and when coupled with Energy Transfer’s pipeline systems, provides our shippers significant flexibility and market diversification as they develop this rapidly emerging resource play,” said Lee Hanse, Senior Vice President of Energy Transfer.

The approximately $1.3 billion MEP project will extend from southeastern Oklahoma, across northeast Texas, northern Louisiana and central Mississippi, to an interconnection with the Transco Pipeline near Butler, Ala. The approximately 500-mile pipeline will consist of 266 miles of 42-inch, 202 miles of 36-inch and 39 miles of 30-inch pipe, and have up to 13 receipt and/or delivery interconnections. The delivery interconnections will provide access to numerous downstream markets, including those served by the NGPL, Transco, Texas Eastern, Tennessee, Columbia Gulf, Texas Gas, Southern Natural, Destin and ANR pipelines. Subject to receipt of regulatory approvals, construction is scheduled to begin this summer and the pipeline is expected to be in service by March 2009.

Midcontinent Express Pipeline is a 50/50 joint venture between Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and Energy Transfer Partners, L.P. (NYSE: ETP). KMP is managing the construction of the project and will operate the pipeline. More
information on the project is available at www.midcontinentexpress.com.

• Initial Capacity On Midcontinent Express Pipeline Sold Out

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