HOUSTON, Dec. 8 (Korea Bizwire) –Kinder Morgan, Inc. (NYSE: KMI) today announced that its Texas Intrastate Pipelines group has entered into a 20-year firm transportation services agreement with SK E&S LNG, LLC (SK LNG), a subsidiary of SK E&S Co. LTD. Under the agreement, KMI will invest more than $150 million to provide more than 320,000 dekatherms per day of firm natural gas transportation services to support SK LNG’s Train III liquefied natural gas export capacity at Quintana Island, Texas. This Train is part of Freeport LNG Development’s Freeport LNG export facility which in total will liquefy up to 13.2 million tonnes per annum once fully operational.
KMI will construct and operate approximately 40 miles of pipeline extending from its existing Kinder Morgan Tejas mainline to an interconnection point with Freeport LNG’s existing pipeline located in Stratton Ridge, Texas. KMI will also expand and construct additional compression on its existing Kinder Morgan Texas and Kinder Morgan Tejas pipeline systems to provide these services upon the startup of Train III, which is expected to occur in the third quarter of 2019. This transportation services agreement provides for the required expansion of the KMI intrastate system by over 1 billion cubic feet per day and will provide additional capacity to the Freeport and Chocolate Bayou areas.
“We are delighted to enter into this business relationship with SK, an emerging leader in the LNG export arena in the United States,” said Duane Kokinda, president of Kinder Morgan’s Midstream Group. “Our extensive network of assets on and near the Gulf Coast of Texas is uniquely positioned to provide SK with access to a variety of gas supply sources for its requirements at the Freeport LNG facility. LNG exports are one of the catalysts driving the growing demand for more natural gas in the United States.”
The agreements are subject to certain conditions, as well as making a final investment decision to construct the Freeport LNG Train III Liquefaction Project.
About Kinder Morgan
Kinder Morgan, Inc. (NYSE: KMI) is the largest energy infrastructure company in North America. It owns an interest in or operates approximately 80,000 miles of pipelines and 180 terminals. The company’s pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals, and handle bulk materials like coal and petroleum coke. Kinder Morgan is the largest midstream and third largest energy company in North America with an enterprise value of more than $125 billion. For more information please visit www.kindermorgan.com.
About SK E&S LNG, LLC
SK E&S LNG, LLC is a limited liability company that has entered into a 20-year Liquefaction Tolling Agreement with Freeport LNG Expansion, L.P. for 2.2 million tons per annum of LNG commencing upon completion of construction of the third train at Freeport LNG’s natural gas liquefaction facility located on Quintana Island near Freeport, Texas.
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.
Source: Kinder Morgan and SK E&S LNG via Business Wire