Kinder Morgan Energy Partners Reports Seven of Its Nine Hurricane-Affected Terminals in Service; Remaining Two Awaiting Restoration of Electricity
HOUSTON, Sept. 8, 2005 - Kinder Morgan Energy Partners, L.P. (NYSE:KMP) today reported that its company-owned terminals in Louisiana and Mississippi suffered no significant structural damage as a result of Hurricane Katrina and seven of the nine are in service. As previously reported, KMP's Plantation Pipe Line, which delivers refined petroleum products to markets in the Southeast, was not damaged and full operations resumed Sept. 2, following the restoration of electricity service at key pump stations.
KMP's Delta Terminal in Harvey, La., which has storage capacity of about 3 million barrels for petrochemicals and oilfield products, is expected to resume limited operations this week, pending restoration of electric power. KMP is also waiting for electricity service to resume at its International Marine Terminal (IMT) facility in Myrtle Grove, La., which will allow the company to better assess the status of operations and establish a start-up schedule. IMT handles approximately 12 million tons of coal and other materials annually.
KMP continues to evaluate the full effect of Hurricane Katrina on its operations, but does not expect the storm will have a material adverse impact on the company's financial results. The company estimates that the cost will be less than $10 million, including insurance deductibles and lost business at its operations.
KMP continues to pay all of its employees in the affected areas, including those assigned to facilities not currently at full operations. Going forward, the company will offer these individuals positions at other locations should their duties be impacted for a prolonged period of time. In addition, KMP has created an employee disaster relief fund to financially aid employees who were impacted by the storm.
"Kinder Morgan has a large and flexible network of terminal assets to serve the southeast and Gulf Coast markets," said Jeff Armstrong, president of KMP's Terminals business segment.
"We are working diligently with our impacted customers and have provided them with alternative storage and transportation solutions using other KMP terminals. Companies interested in procuring terminal services are urged to contact KMP's Terminals group at (713) 369-8753."
KMP's facilities in Louisiana and Mississippi that were minimally impacted and continued to operate include: 1) the Globalplex Terminal in Reserve, La., which primarily handles cement; 2) the Gramercy Bulk Terminal in Gramercy, La., which provides loading services for alumina; 3) the Potash Corporation of Saskatchewan facility in Geismar, La., which handles fertilizer; 4) the Barge Canal Dock in Baton Rouge, La., which handles mainly petroleum coke; 5) the Vicksburg, Miss., terminal, which provides break-bulk services; 6) KMP's terminal in St. Gabriel, La., which stores petrochemicals; and 7) the Baton Rouge Liquid dock, which also handles petrochemicals.
In DeLisle, Miss., where KMP provides contract handling services at a third-party facility, company personnel are working with customers to assist with clean-up efforts. KMP also provides contract services to handle petroleum coke for Chalmette Refining LLC, which owns a refinery in Chalmette, La. These are not KMP-owned facilities and future activity at the sites is dependent upon resumption of operations by the owners of the facilities.
Kinder Morgan Energy Partners, L.P. is one of the largest publicly traded pipeline limited partnerships in America. KMP owns or operates more than 25,000 miles of pipelines and approximately 145 terminals. Its pipelines transport more than 2 million barrels per day of gasoline and other petroleum products and up to 8.4 billion cubic feet per day of natural gas. Its terminals handle over 80 million tons of coal and other dry-bulk materials annually and have a liquids storage capacity of approximately 65 million barrels for petroleum products and chemicals. KMP is also the leading provider of CO2 for enhanced oil recovery projects in the United States.
The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE:KMI) , one of the largest energy transportation and storage companies in America. Combined, the two companies have an enterprise value of approximately $31 billion.
This news release includes forward-looking statements. Although Kinder Morgan believes that its expectations 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 are enumerated in Kinder Morgan's Forms 10-K and 10-Q as filed with the Securities and Exchange Commission
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Rick Rainey, Media Relations
Mindy Mills, Investor Relations