$87-million Monterrey pipeline construction begins

The 152-km long pipeline will interconnect with the southern end of the Kinder Morgan Texas Pipeline (KMTP) system in Starr County, Texas, and is designed to initially transport up to 375MMcf/d of natural gas. Kinder Morgan has entered into a 15-year contract with PGPB, which is understood to have subscribed for all of the capacity. The pipeline will connect to a 1,000-MW power plant complex owned by Iberdrola and CFE, Mexico’s national electric company, and the PGPB gas transportation system. Construction of the pipeline is expected to be completed during the second quarter of 2003.

Speaking at the launch of the project, Richard D.Kinder, chairman and CEO of KMP said: “The pipeline will position Kinder Morgan to help meet the rising demand for imported natural gas into Mexico, which is expected to increase significantly over the next eight years. Combined with our existing infrastructure in the area, the Mier-Monterrey pipeline will enable KMP to transport about half of Mexico’s natural gas imports when the line is placed in service.” The pipeline can be expanded in the future to meet additional demand growth or to export gas from Mexico’s Burgos Basin to the US.

Kinder Morgan Energy Partners is the largest publicly-traded pipeline limited partnership in the US in terms of market capitalization, and the largest independent refined petroleum products pipeline system in the US in terms of volumes delivered. It owns or operates more than 40,000km of pipelines and over 70 terminals. Its pipelines transport more than 2MMbrl/d of petrol and other petroleum products, and up to 7.8Bcf/d of natural gas.

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