Kinder Morgan to expand capacity of its pipelines

Vancouver Sun
27-Jan-2006

CALGARY -- Kinder Morgan Inc., which operates about 64,000 km of pipelines in North America, said it has reached agreements with shippers to boost the capacity of its Trans Mountain system in Canada by a third.

The $600-million project will increase the capacity of Trans Mountain to 300,000 barrels a day by 2008, Houston-based Kinder Morgan said in a statement on Thursday. Shippers agreed to undisclosed rates and other financial details of operation of the pipeline for five years.

Kinder Morgan plans to expand Trans Mountain, the only link to the West Coast from oil sands in western Canada, to meet increased demand from refineries in the U.S. West and Asia. The line carries oil and refined products to Vancouver and Washington state from Edmonton.

An increase in pumping capability will lift capacity to 260,000 barrels a day by early next year, Kinder Morgan said. The company said it plans to eventually expand Trans Mountain's capacity to as much as 1.1 million barrels a day. It will begin an open season, or call for shipping commitments, in March.

Kinder Morgan acquired Trans Mountain when it bought Vancouver-based Terasen Inc. for $6.71 billion last month.