KMP Successfully Tests Ethanol Pipeline; Company Now Testing Blended Biodiesel Transportation

 

HOUSTON, Oct. 15, 2008 – Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced that in addition to successfully performing tests to determine the commercial viability of moving ethanol in its Central Florida pipeline system, it is now undertaking tests to assess transporting biodiesel through its pipelines on a commercial basis.  The company is currently conducting a test movement of blended B-5 biodiesel in a segment of the Plantation Pipe Line system that transports gasoline and diesel from Collins, Miss., to Spartanburg, S.C.  Kinder Morgan, a 51 percent owner and the operator of Plantation Pipe Line Company, expects test results to be available by the end of October.  The company is also evaluating the transportation of biodiesel on its Portland to Eugene, Ore., pipeline to support the forthcoming biodiesel mandate in Oregon.

“We are pursing pipeline solutions to the overall supply chain for biofuels,” said KMP Products President Tom Bannigan.  “We look forward to working with producers and our shippers as we continue to assess the optimum transportation and storage logistics for meeting the demand for alternative fuels in the market place.”

KMP recently completed a series of tests to demonstrate the commercial feasibility of transporting batched denatured ethanol in its 16-inch gasoline pipeline between Tampa and Orlando, Fla.  The company is finalizing mechanical modifications to the pipeline and intends to offer this transportation service to its customers by mid-November.  Kinder Morgan is also evaluating other opportunities for transportation of batched ethanol in its pipeline portfolio.  In addition, the company has completed over $60 million in ethanol projects including modifications to tanks, truck racks and related infrastructure for new or expanded ethanol service at various terminals in the Southeast and Pacific Northwest and has approved an additional $27 million in investments to further expand its ethanol handling capability in southeastern markets.  Kinder Morgan offers offloading, storage and blending of ethanol at its terminals in Florida, Georgia, South Carolina, North Carolina, Virginia, Pennsylvania, New York, Illinois, Tennessee, Mississippi, Louisiana, Texas, California, Nevada, Arizona, Washington and Oregon.

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company in North America.  KMP owns an interest in or operates more than 25,000 miles of pipelines and 165 terminals.  Its 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.  KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America.  One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of over $20 billion.  The general partner of KMP is owned by Knight Inc. (formerly Kinder Morgan, Inc.), a private company.

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This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 Form 10-K and 10-Q as filed with the Securities and Exchange Commission.