Kinder Morgan Canada, a subsidiary of Kinder Morgan, Inc., on Thursday announced that it has received approval from the National Energy Board (NEB) for a new five-year Incentive Toll Settlement that will govern the economic terms and service standards for the Trans Mountain pipeline system from 2006 through 2010.
The agreement provides the commercial support for the much needed first phase of expansion of the Trans Mountain pipeline system, which will increase capacity to 300,000 barrels per day (bpd). The project includes the Trans Mountain pump station expansion that will increase pipeline capacity from the current 225,000 bpd to 260,000 bpd by April 2007, and the Anchor Loop expansion, which will add an additional 40,000 bpd of new capacity to the west coast of British Columbia and Washington state by late 2008. These projects represent approximately C$660 million in capital investments and reflect a commitment by Kinder Morgan Canada to progressively expand pipeline capacity from Alberta to serve markets in Canada, the United States and offshore.
"We are delighted with the timely approval of this new Incentive Toll Settlement from the NEB, which we believe is a win-win for our customers and the company," said Ian Anderson, president of Kinder Morgan Canada. "Through this settlement we will be able to provide our shippers with stable, certain tolls while at the same time expand our system and be able to move more barrels of petroleum products to existing and growing West Coast markets."
Anderson noted the settlement also sets the stage for additional phased-in expansions on the Trans Mountain pipeline system. "With growth in oilsands production and strong demand from West Coast markets, we will continue to work with our customers to pursue additional expansions on Trans Mountain. Pending customer support, our next phase of expansion, known as TMX-2, would boost capacity on Trans Mountain by an incremental 100,000 bpd by 2011."
Kinder Morgan Canada is a leader in the petroleum transportation industry. The company transports over 680,000 bpd of petroleum products to markets in Canada, the United States and offshore. The company's extensive 4,500- kilometer network of pipeline systems -- complemented by strategically placed storage facilities and the Westridge Marine Terminal -- give our customers choice, flexibility and options for moving their products to market.
Kinder Morgan, Inc. is one of the largest energy transportation, storage and distribution companies in North America. It owns an interest in or operates approximately 43,000 miles of pipelines that transport primarily natural gas, crude oil, petroleum products and CO2; more than 150 terminals that store, transfer and handle products like gasoline and coal; and provides natural gas distribution service to over 1.1 million customers.