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Kinder Morgan, Sempra Energy negotiate for Rocky Mountain Pipeline.

Kinder Morgan Energy Partners, L.P. and Sempra Pipelines & Storage, a unit of Sempra Energy announced that they have entered into exclusive negotiations regarding a Memorandum of Understanding that will result in the Wyoming Natural Gas Pipeline Authority (WNGPA) joining the two companies in support of their recently announced natural gas pipeline proposal that will link long-lived, rapidly growing production areas in the Rocky Mountain region to the upper Midwest and Eastern United States.

As designed, the 42-inch diameter pipeline will have capacity of up to 2 billion cubic feet per day and cost an estimated $3 billion. The preliminary route of the 1,500-mile pipeline originates at the Wamsutter Hub in Wyoming and extends to eastern Ohio with an ultimate route to be selected based on shipper interest.

Pending final negotiations, the WNGPA will contract for up to 200 MMcf/day of firm capacity on the proposed pipeline, explore use of its $1 billion in bonding authority to provide debt financing for the project and provide support for the extension of the project to the Opal Hub in Wyoming.

With the support of the WNGPA, it is anticipated the Wamsutter to Cheyenne portion of this project will be completed by year-end 2006. The Cheyenne to Midwest portion of the pipeline project will be completed by year-end 2007, and the eastern portion of the project providing direct access to markets in the Northeast is anticipated to be in service in late 2008 or early 2009.
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Title Annotation:NEWSLINE: The Latest Industry Development
Publication:Underground Construction
Geographic Code:1USA
Date:Dec 1, 2005
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