The Federal Energy Regulatory Commission (FERC) has approved construction of the Rockies Express-West project, 713 miles of 42-inch diameter pipeline that will extend from the Cheyenne Hub in Weld County, Colo., to an interconnection with Panhandle Eastern Pipe Line located in Audrain County, Mo. The pipeline will also interconnect with the pipeline systems of Kinder Morgan Interstate Gas Transmission, Northern Natural Gas Company, Natural Gas Pipeline Company of America and ANR. Actual construction on Rockies Express-West is expected to commence in May with an in-service target date of Jan. 1, 2008.
"The sponsor companies appreciate the timely manner in which the FERC completed its environmental review and subsequently authorized the certificate for Rockies Express-West," said Scott Parker, president of Kinder Morgan Energy Partners' Natural Gas Pipelines group. "We look forward to completing another significant segment of the Rockies Express project, which will transport natural gas from the prolific Rocky Mountain supply basins to markets in the Midwest."
Rockies Express Pipeline LLC is a $4.4 billion joint venture of Kinder Morgan Energy Partners, Sempra Pipelines and Storage, a unit of Sempra Energy, and ConocoPhillips, and is one of the largest natural gas pipelines to be constructed in North America. When completed, after receipt of all necessary approvals, the 1,678-mile pipeline will have a capacity of approximately 1.8 billion cubic feet per day. Binding firm commitments from creditworthy shippers have been secured for virtually all of the capacity on the pipeline. KMP is overseeing construction of the project and will operate the pipeline.
The first 328-mile segment of the Rockies Express project, which runs from the Meeker Hub in Rio Blanco County, Colo., to the Wamsutter Hub in Sweetwater County, Wyo., to the Cheyenne Hub, is in service and has a current capacity of 500,000 dekatherms per day. The final segment of the project is Rockies Express-East, which will consist of 637 miles of pipeline from eastern Missouri to the Clarington Hub in eastern Ohio. Subject to receipt of regulatory approvals, Rockies Express-East is expected to begin interim service as early as Jan. 1, 2009, and to be fully operational by June 2009.
Kinder Morgan Energy Partners, L.P. is one of the largest publicly traded pipeline limited partnerships in America. KMP owns an interest in or operates approximately 26,000 miles of pipelines and more than 150 terminals. Its pipelines transport more than 2 million barrels/day of gasoline and other petroleum products and up to 7 billion cubic feet/day of natural gas. Its terminals handle over 90 million tons of coal and other dry-bulk materials annually and have a liquids storage capacity of about 70 million barrels for petroleum products and chemicals. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America.
The general partner of KMP is owned by Kinder Morgan, Inc., one of the largest energy transportation, storage and distribution companies in North America. Combined, the two companies have an enterprise value of more than $35 billion.
Sempra Pipelines & Storage acquires, builds and operates natural gas pipelines and storage facilities in Mexico and the United States. Sempra Energy, based in San Diego, is a Fortune 500 energy-services holding company with 2006 revenues of nearly $12 billion. The Sempra Energy companies' 14,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia.
ConocoPhillips is an integrated petroleum company with interests around the world. Headquartered in Houston, the company had approximately 38,400 employees, $165 billion of assets and $184 billion of revenues as of December 31, 2006.