Kinder Morgan - About Us

KMTP, acquired in conjunction with the December 21, 2000 transfer of assets to KMP, operates an intrastate natural gas pipeline system, which is leased from Occidental Petroleum Corporation under a 30-year lease that commenced on December 31, 1996. The pipeline system is principally located along the Texas Gulf Coast area. The system includes approximately 2,500 miles of pipelines, gathering lines, sales laterals and related facilities. KMTP transports natural gas from producing fields in South Texas, the Gulf Coast and the Gulf of Mexico to markets in the Houston and Beaumont/Port Arthur area. In addition, KMTP has interconnections with Natural Gas Pipeline Company of America, a subsidiary of KMI, and 22 other intrastate and interstate pipelines.

Markets. KMTP is a merchant as well as a transporter of natural gas. Principal customers of KMTP include the electric and natural gas utilities that serve the Houston area and industrial customers located along the Houston Ship Channel and in the Beaumont/Port Arthur area. This market is one of the largest and most competitive natural gas markets in the United States. Large industrial end users of natural gas in this market have, on average, three pipelines connected to their plants. Large local distribution companies and electric utilities have multiple pipeline connections. Multiple pipeline connections provide the consumer the opportunity to purchase natural gas directly from a number of pipelines and/or from third parties that may hold capacity on the various pipelines. In KMTP's markets, the greatest demand for natural gas deliveries for heating load occurs in the winter months, while electric generation peak demand occurs in the summer months.

Natural Gas Supply. Since KMTP serves as a merchant provider as well as a transporter of natural gas, the KMTP's natural gas supply for its merchant activities is sourced principally from South Texas and the Texas Gulf Coast region. KMTP has a diverse supplier base and is well positioned to improve its access to new supplies of natural gas from a variety of producing basins in South Texas and on the Texas Gulf Coast. There is an ongoing supply development program to offset the decline of mature fields currently connected to the KMTP pipeline system as well as to provide for projected increases in sales volumes. In addition, KMTP is able to compete for large volumes of natural gas expected to be available from deepwater developments in the Gulf of Mexico.

Gathering and Processing. KMTP is also engaged in the gathering and processing of natural gas. KMTP operates the Live Oak, Willamar, Spanish Camp and Sarita gas gathering systems. The company processes natural gas at the Tejas Houston Central processing plant located in Colorado County and Duke Energy's Port Arthur gas processing plant located in Jefferson County. In addition, KMTP processes gas at its Galveston Bay cryogenic facility located in Chambers County. KMTP also owns and operates a 450 GPM amine plant located near Thompsonville in Jim Hogg County. In addition, a third party owns and operates a 230 GPM amine plant treating gas on KMTP's system in Webb County.

Storage. KMTP has also developed a salt dome storage facility located near Markham, Texas with a subsidiary of NISOURCE Industries, Inc. The facility consists of two salt dome caverns with approximately 8.3 billion cubic feet of total storage capacity, over 5.7 billion cubic feet of working gas capacity and up to 500 million cubic feet per day of peak deliverability. The storage facility is leased by a partnership in which KMTP and a subsidiary of NIPSCO are partners. KMTP has executed a 20-year sublease with the partnership under which it has rights to 50% of the facility's working gas capacity, 85% of its withdrawal capacity and approximately 70% of its injection capacity. KMTP also leases a salt dome cavern from Dow Hydrocarbon & Resources, Inc. in Brazoria County, Texas, referred to as the Stratton Ridge Facility. The Stratton Ridge Facility has a total capacity of 6.5 billion cubic feet, working gas capacity of 3.6 billion cubic feet and a peak day deliverability of up to 150 million cubic feet per day. In addition, KMTP holds 15 Bcf of third party storage capacity in the Houston area.

Competition. KMTP competes with marketing companies, interstate and intrastate pipelines for sales and transport customers in the Houston, Beaumont and Port Arthur areas and for acquiring gas supply in South Texas, the Gulf Coast of Texas and the Gulf of Mexico.


Natural Gas Pipelines Interstate Pipelines ► - Fayetteville Express Pipeline - KMIGT - Kinder Morgan Louisiana Pipeline - Midcontinent Express Pipeline - NGPL - Rockies Express Pipeline - Trailblazer - TransColorado Intrastate Pipelines Upstream		More Information about KMTP KMTP, acquired in conjunction with the December 21, 2000 transfer of assets to KMP, operates an intrastate natural gas pipeline system, which is leased from Occidental Petroleum Corporation under a 30-year lease that commenced on December 31, 1996. The pipeline system is principally located along the Texas Gulf Coast area. The system includes approximately 2,500 miles of pipelines, gathering lines, sales laterals and related facilities. KMTP transports natural gas from producing fields in South Texas, the Gulf Coast and the Gulf of Mexico to markets in the Houston and Beaumont/Port Arthur area. In addition, KMTP has interconnections with Natural Gas Pipeline Company of America, a subsidiary of KMI, and 22 other intrastate and interstate pipelines. Markets. KMTP is a merchant as well as a transporter of natural gas. Principal customers of KMTP include the electric and natural gas utilities that serve the Houston area and industrial customers located along the Houston Ship Channel and in the Beaumont/Port Arthur area. This market is one of the largest and most competitive natural gas markets in the United States. Large industrial end users of natural gas in this market have, on average, three pipelines connected to their plants. Large local distribution companies and electric utilities have multiple pipeline connections. Multiple pipeline connections provide the consumer the opportunity to purchase natural gas directly from a number of pipelines and/or from third parties that may hold capacity on the various pipelines. In KMTP's markets, the greatest demand for natural gas deliveries for heating load occurs in the winter months, while electric generation peak demand occurs in the summer months. Natural Gas Supply. Since KMTP serves as a merchant provider as well as a transporter of natural gas, the KMTP's natural gas supply for its merchant activities is sourced principally from South Texas and the Texas Gulf Coast region. KMTP has a diverse supplier base and is well positioned to improve its access to new supplies of natural gas from a variety of producing basins in South Texas and on the Texas Gulf Coast. There is an ongoing supply development program to offset the decline of mature fields currently connected to the KMTP pipeline system as well as to provide for projected increases in sales volumes. In addition, KMTP is able to compete for large volumes of natural gas expected to be available from deepwater developments in the Gulf of Mexico. Gathering and Processing. KMTP is also engaged in the gathering and processing of natural gas. KMTP operates the Live Oak, Willamar, Spanish Camp and Sarita gas gathering systems. The company processes natural gas at the Tejas Houston Central processing plant located in Colorado County and Duke Energy's Port Arthur gas processing plant located in Jefferson County. In addition, KMTP processes gas at its Galveston Bay cryogenic facility located in Chambers County. KMTP also owns and operates a 450 GPM amine plant located near Thompsonville in Jim Hogg County. In addition, a third party owns and operates a 230 GPM amine plant treating gas on KMTP's system in Webb County. Storage. KMTP has also developed a salt dome storage facility located near Markham, Texas with a subsidiary of NISOURCE Industries, Inc. The facility consists of two salt dome caverns with approximately 8.3 billion cubic feet of total storage capacity, over 5.7 billion cubic feet of working gas capacity and up to 500 million cubic feet per day of peak deliverability. The storage facility is leased by a partnership in which KMTP and a subsidiary of NIPSCO are partners. KMTP has executed a 20-year sublease with the partnership under which it has rights to 50% of the facility's working gas capacity, 85% of its withdrawal capacity and approximately 70% of its injection capacity. KMTP also leases a salt dome cavern from Dow Hydrocarbon & Resources, Inc. in Brazoria County, Texas, referred to as the Stratton Ridge Facility. The Stratton Ridge Facility has a total capacity of 6.5 billion cubic feet, working gas capacity of 3.6 billion cubic feet and a peak day deliverability of up to 150 million cubic feet per day. In addition, KMTP holds 15 Bcf of third party storage capacity in the Houston area. Competition. KMTP competes with marketing companies, interstate and intrastate pipelines for sales and transport customers in the Houston, Beaumont and Port Arthur areas and for acquiring gas supply in South Texas, the Gulf Coast of Texas and the Gulf of Mexico.