HOUSTON & TULSA--(BUSINESS WIRE)--Kinder Morgan Crude and Condensate LLC (KMCC) and Double Eagle Pipeline LLC, a 50/50 joint venture between Magellan Midstream Partners, L.P. (NYSE: MMP) and Kinder Morgan Energy Partners, L.P. (NYSE: KMP), today announced that they have entered into a long-term agreement with Anadarko Petroleum Corporation (NYSE: APC) to transport Eagle Ford Shale production from Gardendale, Texas, in LaSalle County, to the Houston Ship Channel via the KMCC Pipeline. Double Eagle will construct 160,000 barrels of storage capacity and a pump station at Gardendale in addition to building an approximately 10-mile pipeline to connect the Double Eagle Pipeline and the KMCC Pipeline in Karnes County, Texas. Double Eagle will transport product from its new Gardendale station to the KMCC Helena station in Karnes County. KMCC will construct 240,000 barrels of storage at its Helena Station to move crude and condensate from the Double Eagle Pipeline to the KMCC delivery points. Double Eagle and KMCC expect to complete construction of these facilities in early 2015 to move production to the Houston Ship Channel.
“We believe connecting the Double Eagle and KMCC systems will offer unique flexibility for Anadarko and other Eagle Ford producers to access both the Corpus Christi and Houston-area markets,” said Don Lindley, president of Natural Gas Liquids for KMP, regarding the approximately $45 million Kinder Morgan investment. The transaction is expected to be immediately accretive to cash distributable to MMP and KMP unitholders upon the project’s completion.
“We are pleased that customer demand on the Double Eagle system is continuing to grow,” said Michael Mears, Magellan’s chief executive officer. “The increased connectivity for the Double Eagle system is in direct response to our customers’ desire to more efficiently supply additional condensate barrels to the Houston Ship Channel.”
The Double Eagle Pipeline includes 140 miles of new 12-inch pipeline connecting to an existing 50-mile, 14- and 16-inch pipeline segment owned by Kinder Morgan extending from Three Rivers, Texas, to Magellan’s marine and storage terminal in Corpus Christi, Texas. The initial capacity of the pipeline is 100,000 barrels per day, but can be expanded with additional pumps.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil. The partnership owns the longest refined petroleum products pipeline system in the country, with access to more than 40% of the nation’s refining capacity, and can store over 80 million barrels of petroleum products such as gasoline, diesel fuel and crude oil. More information is available at www.magellanlp.com.
About Kinder Morgan Energy Partners
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company and one of the largest publicly traded pipeline limited partnerships in America. It owns an interest in or operates more than 54,000 miles of pipelines and 180 terminals. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Kinder Morgan is the largest midstream and the fourth largest energy company in North America with a combined enterprise value of approximately $105 billion. It owns an interest in or operates more than 82,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMI owns the general partner interests of KMP and El Paso Pipeline Partners, L.P. (NYSE: EPB), along with limited partner interests in KMP and EPB and shares in Kinder Morgan Management, LLC (NYSE: KMR). For more information please visit www.kindermorgan.com.
Kinder Morgan’s Forward-Looking Statement
This news release includes forward-looking statements. These forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although Kinder Morgan believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include those enumerated in Kinder Morgan’s reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, Kinder Morgan undertakes no obligation to update or review any forward-looking statement because of new information, future events or other factors. Because of these uncertainties, readers should not place undue reliance on these forward-looking statements.
Magellan Midstream Partners’ Forward-Looking Statement
Portions of this document constitute forward-looking statements as defined by federal law. Although Magellan Midstream Partners, L.P. believes any such statements are based on reasonable assumptions, actual outcomes may be materially different. Among the key risk factors associated with the project that may have a direct impact on the partnership’s results of operations and financial condition are: (1) the ability to obtain all required permits and regulatory approvals on time; (2) the ability to complete construction of the project on time and at expected costs; (3) price fluctuations and overall demand for refined petroleum products; (4) changes in tariff rates or other terms imposed by state or federal regulatory agencies; (5) the occurrence of an operational hazard or unforeseen interruption; (6) disruption in the debt and equity markets that negatively impacts the ability to finance capital spending and (7) failure of customers or vendors to meet or continue contractual obligations. Additional information about issues that could lead to material changes in Magellan Midstream Partners, L.P.’s performance is contained in the partnership’s filings with the Securities and Exchange Commission. Magellan Midstream Partners, L.P. undertakes no obligation to revise these forward-looking statements to reflect events or circumstances occurring after today’s date.