HOUSTON, Dec. 20, 2013 (GLOBE NEWSWIRE) -- Kinder Morgan Energy Partners, L.P. (NYSE: KMP ) and Targa Resources Partners LP (NYSE: NGLS ) today announced they have signed a letter of intent to form a joint venture to construct new natural gas liquids (NGL) fractionation facilities at Mont Belvieu, Texas, to provide services for producers in the Utica and Marcellus Shale resource plays in Ohio, West Virginia and Pennsylvania.
In order to allow producers and shippers sufficient time to assess their Gulf Coast fractionation and pipeline needs, a binding open season currently under way for the Utica Marcellus Texas Pipeline (UMTP), a proposed joint venture between MarkWest Utica EMG, L.L.C. and KMP, will be extended until Feb. 28, 2014. The UMTP will involve the abandonment and conversion, subject to Federal Energy Regulatory Commission approval, of over 1,000 miles of KMP's existing Tennessee Gas Pipeline system, currently in natural gas service, from Mercer, Pa., to Natchitoches, La., and building approximately 200 miles of new pipeline from Natchitoches to Mont Belvieu. The new fractionation facilities will be located adjacent to Targa's existing facilities at Mont Belvieu and will provide fractionation services for customers of UMTP of up to approximately 150,000 barrels per day (bpd), and potentially serve up to 400,000 bpd of maximum pipeline capacity over time.
"The joint venture with Targa will provide our NGL pipeline customers with a fully integrated NGL solution from the tailgate of their processing plants in Utica and Marcellus to the ultimate consumer of the purity products along the Gulf Coast," said Don Lindley, president of Natural Gas Liquids for KMP. "Targa's market connectivity, storage, and expertise in fractionation and in LPG export infrastructure and services on the Gulf Coast may provide the Utica and Marcellus producers with maximum value and optionality at the largest NGL hub in the United States."
"We are pleased to team up with Kinder Morgan to offer Utica and Marcellus pipeline customers the opportunity to obtain fractionation and related services at our expanding Mont Belvieu complex," said Joe Bob Perkins, Chief Executive Officer of Targa. "We believe that this fractionation joint venture in combination with the Kinder Morgan and MarkWest Utica EMG pipeline project provides a solid long-term liquids solution for production growth in the Utica and Marcellus."
About Kinder Morgan
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, CO 2 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 .
About Targa Resources Partners LP
Targa Resources Partners LP (NYSE: NGLS ) is a publicly traded Delaware limited partnership formed in October 2006 by its parent, Targa Resources Corp. to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets. The partnership is a leading provider of midstream natural gas, NGL, terminaling and crude oil gathering services in the United States. The partnership is engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGL and NGL products; gathering, storing and terminaling crude oil; and storing, terminaling and selling refined petroleum products. The principal executive offices of Targa Resources Partners are located at 1000 Louisiana, Suite 4300, Houston, TX 77002 and their telephone number is 713-584-1000. For more information please go to www.targaresources.com .
Kinder Morgan Cautionary Language
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.
Targa Resources Partners LP Cautionary Language
Certain statements in this release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this release that address activities, events or developments that Targa expects, believes or anticipates will or may occur in the future, are forward-looking statements. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside Targa's control, which could cause results to differ materially from those expected by management of Targa. Such risks and uncertainties include, but are not limited to, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, natural gas liquids and crude oil, the timing and success of business development efforts; and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in Targa's filings with the Securities and Exchange Commission, including the Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Targa does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Kinder Morgan Media Relations Richard Wheatley (713) 420-6828 Investor Relations (713) 369-9490 www.kindermorgan.com Targa Resources Partners LP Investor contact: (713) 584-1133 Jennifer Kneale Director, Finance Matthew Meloy Senior Vice President, Chief Financial Officer and Treasurer
