Feb 11 Pipeline company Kinder Morgan Energy
Partners has signed an agreement with power producer
Calpine Energy Services to deliver and store natural gas
for power plants in Texas, Kinder said in a press release on
Kinder will spend about $30 million to expand its Texas
intrastate pipeline system in south Texas to deliver gas to
Calpine's Magic Valley Generating Station in Hidalgo County,
just north of the Mexican border.
Kinder will provide 450 million cubic feet per day of
transportation and 5 billion cubic feet of storage capacity to
serve nine Calpine electric generating facilities.
The project will transport gas produced in the Eagle Ford
shale play, located in south and east Texas, and other Texas
shale plays, a Kinder spokesman said in an email.
Increased domestic shale gas production has lowered both gas
and power prices in the United States since the price of gas
mostly sets power prices.
"Ensuring the availability and reliability of natural gas
supply is an important aspect of optimizing the value of
Calpine's clean, efficient and flexible power plants," Bob
Hayes, Calpine's vice president of natural gas trading, said in
Kinder Morgan Energy Partners owns an interest in, or
operates, roughly 46,000 miles of pipelines and 180 terminals.
The general partner of KMP is owned by Kinder Morgan Inc