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HOUSTON, June 13, 2003 -- Kinder Morgan Energy Partners, L.P. announced it has entered into a 15-year agreement to supply Praxair, Inc. with up to 90,000 MMBtu of natural gas per day on Kinder Morgan's Texas intrastate pipeline system.
"We are pleased to enter into this long-term agreement that provides us the opportunity to ally with a solid company like Praxair, to grow the business of our Texas Intrastate Pipeline Group and to generate reliable income for our unitholders," said KMP Chairman and CEO Richard D. Kinder. "With approximately 5,800 miles of pipeline and more than 5 billion cubic feet of peak capacity, our Texas intrastate pipelines provide a valuable link between natural gas producing fields in south Texas and key markets within the state."
"Securing a long-term supply of natural gas from Kinder Morgan for our new hydrogen plants is consistent with our business strategy. It is another step to strengthen our supply capabilities and reinforces Praxair's commitment to our hydrogen customers in the U.S. Gulf Coast," said Dan Yankowski, vice president, South Region, for Praxair's North American Industrial Gases organization.
Under the agreement, Kinder Morgan will supply natural gas to Praxair's new hydrogen facilities located in Texas City, Texas, and Port Arthur, Texas. The new hydrogen facilities are scheduled to be in production in 2004.
Kinder Morgan Energy Partners, L. P. is the largest publicly traded pipeline limited partnership in the U.S. in terms of market capitalization and the largest independent refined petroleum products pipeline system in the U.S. in terms of volumes delivered. KMP owns or operates more than 25,000 miles of pipelines and approximately 80 terminals. Its pipelines transport more than two million barrels per day of gasoline and other petroleum products and up to 7.8 billion cubic feet per day of natural gas. Its terminals handle over 60 million tons of coal and other dry-bulk materials annually and have a liquids storage capacity of approximately 55 million barrels for petroleum products and chemicals. KMP is also the leading provider of CO2 for enhanced oil recovery projects in the U.S.
The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI - News), one of the largest energy transportation and storage companies in America. Combined, the two companies have an enterprise value of approximately $20 billion.
Praxair supplies a complete portfolio of large-volume industrial gases, cylinder gases and specialized services to refinery customers and is a leading supplier of hydrogen to customers worldwide. It operates 22 steam-methane reformers and seven major hydrogen pipeline systems that deliver more than 500 million cubic feet per day (590,000 cubic meters per hour) of hydrogen. Praxair supplies more than 50 refineries and petrochemical plants from its Gulf Coast pipeline system in Louisiana and Texas.
Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2002 sales of $5.1 billion. The company produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. Praxair is a recognized leader in the commercialization of new technologies that bring productivity and environmental benefits to a diverse group of industries, including aerospace, chemicals, electronics, energy, food and beverage, healthcare, manufacturing, metals and others. More information on Praxair is available on the Internet at www.praxair.com .
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