Kinder Morgan Management, LLC : Kinder Morgan Increases Ownership in BOSTCO Project to 98 Percent, Begins Construction

HOUSTON--(BUSINESS WIRE)--Jan. 4, 2012-- Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced the purchase of TransMontaigne Partners L.P.'s 50 percent interest in the previously announced Battleground Oil Specialty Terminal Company, LLC (BOSTCO) project. KMP now owns 98 percent of BOSTCO and began construction Dec. 14, 2011, on the new, approximately $430 million oil terminal located on the Houston Ship Channel. The remaining 2 percent will be held by a customer at the BOSTCO facility. The first phase of the project currently includes construction of 52 storage tanks that will have a capacity of 6.6 million barrels for handling residual fuel, feedstocks, distillates and other black oils. Terminal service agreements and/or letters of intent have been executed with customers for almost all of the capacity.

"The project will include one of the deepest vessel drafts in the Houston Ship Channel and position Kinder Morgan extremely well for the growing trend of exporting petroleum related products overseas," said Kinder Morgan Terminals President Jeff Armstrong.

BOSTCO is expected to be accretive to cash distributable to KMP unitholders when the first phase of the project comes online in the third quarter of 2013. The first phase of the project is expected to be completed by the first quarter of 2014.

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates more than 28,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of over $35 billion. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Combined, KMI and KMP have an enterprise value of approximately $60 billion.

This news release includes forward-looking statements.Although Kinder Morgan believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize.Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are enumerated in Kinder Morgan's Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.