Kinder Morgan has minor damage

Sept. 28, 2005
Kinder Morgan Inc, Houston TX and Kinder Morgan Energy Partners LP, has announced that the companies' key assets in areas affected by Hurricane Rita are operating and experienced relatively minor damage.

Kinder Morgan Inc, Houston TX and Kinder Morgan Energy Partners LP, has announced that the companies' key assets in areas affected by Hurricane Rita are operating and experienced relatively minor damage.

Here is a report on:

Terminals (KMP)

•KMP's liquids terminals on the Houston Ship Channel resumed operations on Saturday, Sept. 24, after shutting down Thursday, Sept. 22, in coordination with refineries and other pipeline companies. The truck rack resumed service Saturday afternoon using generators and provided gasoline and diesel to emergency response authorities and tanker trucks. The terminal also began receiving inbound fuel deliveries from Corpus Christi and Houston Ship Channel refineries on Saturday. Power was restored to the Pasadena and Galena Park terminals Saturday night, at which time the company reenergized the facilities. Outbound pipeline deliveries began Sunday afternoon, Sept. 25, and the facilities are now available for normal operations. Combined, Pasadena/Galena Park stores up to 18 million barrels of refined products and petrochemicals with a daily throughput of about 1.1 million barrels.

•In Texas, seven KMP terminals that primarily handle petroleum coke temporarily ceased operations as a result of refineries being shut down prior to the storm. One of these facilities has already resumed service and the others will do so in coordination with the start up of applicable refineries. In Louisiana, KMP's bulk and liquids terminals did not experience significant damage from Hurricane Rita. Natural Gas Pipelines (KMI and KMP)

•KMI's Natural Gas Pipeline Company of America (NGPL) continued to operate throughout the storm. The Gulf Coast and Amarillo pipelines that serve the Chicago market continue to operate at normal levels and were unaffected by the storm. The Louisiana Line experienced some curtailment of firm transportation capacity following mandatory evacuations of certain areas near compressor stations, as well as a temporary loss of electric power at some compressor stations. NGPL accessed its Louisiana facilities Sunday and found only minor damage. Currently, only one compressor station is unavailable for service and several meter sites are not accessible due to flooding. The NGPL system consists of about 9,800 miles of pipelines that transport up to 5.8 billion cubic feet (Bcf) of natural gas per day and features approximately 243 Bcf working gas storage capacity.

•KMP's Texas Intrastate pipeline system also operated throughout the storm and had sufficient supplies to meet market needs. Average daily volumes fell to about 50 percent of normal levels during the storm as a result of decreased demand from Gulf Coast industrial customers. On Sunday, demand began increasing and the system delivered about 60 percent of average daily volumes.

Products Pipelines (KMP)

•Plantation Pipe Line Company reported normal operations throughout the storm and expects to continue transporting approximately 600,000 barrels per day of gasoline, diesel/heating oil and jet fuel to the Southeast via its 3,100-mile pipeline system that runs from eastern Louisiana to Washington, D.C. It appears that most of the refineries that feed products to Plantation were not impacted by Hurricane Rita (Kinder Morgan does not own any refineries). Plantation is owned 51 percent by KMP and 49 percent by ExxonMobil.

•The Pacific system reported normal operations throughout the storm, including the East and West Lines that transport fuel into the Tucson and Phoenix, Ariz., markets. The Pacific system on average transports more than 1.1 million barrels of gasoline, jet fuel and diesel per day in California, Arizona, Nevada, New Mexico, Texas and Oregon through 3,100 miles of pipelines and has not been impacted by Hurricane Rita.

•The 104-mile Cypress Pipeline, which serves one customer and transports primarily ethane from Mont Belvieu, Texas, to Lake Charles, La., was temporarily shut down and is ready to resume operations once supply is available and the customer is back online.