Biodiesel

Kinder Morgan Completes First Commercial Biodiesel Shipment Via Plantation Pipe Line Co.

Date Posted: June 30, 2009

Houston—Kinder Morgan Energy Partners, L.P. (NYSE: KMP) y announced June 30 that Plantation Pipe Line Company is the first pipeline company in the United States to transport biodiesel for commercial purposes.

Plantation completed the first transmarket commercial shipment of blended 5 percent biodiesel (B5) on a mainline segment of the pipeline.

The company injected B99 into ultra low sulfur diesel at Plantation's Collins, MS, pump station and breakout tank farm creating a 15,000 barrel batch of B5 that it then shipped to marketing terminals located in Athens, GA, and Roanoke, VA.

Upon receipt of the product at both facilities, Kinder Morgan performed testing on samples from the batch and found that the samples arrived on specification.

"We believe the blending and transportation of biodiesel by pipeline will have significant advantages for our customers when compared to the alternative of installing capital intensive blending facilities at individual marketing terminals," said KMP Products Pipeline President Tom Bannigan.

"Kinder Morgan is responding to customers' needs for blending and transporting biodiesel to meet federal regulatory requirements."

In addition to Athens and Roanoke, the company will be able to move blended B5 to the following markets along Plantation:

• Birmingham and Oxford, AL

• Bremen and Atlanta, GA

• Belton and Spartanburg, SC

• Charlotte and Greensboro, NC

Kinder Morgan also is optimistic that it will be able to ship blended biodiesel on Plantation's Tennessee lateral serving both Chattanooga and Knoxville.

The company believes jet fuel currently moving on this lateral can readily be supplied into these markets by means other than Plantation which would open the door for shipment of a blended biodiesel on this lateral line.

Bannigan added, "Kinder Morgan is initially focusing on moving blended biodiesel on segments of the Plantation system that transport only gasoline and diesel because of concerns about possible "trailback" of biodiesel into subsequent jet fuel batches.

"If we can work through these issues, we will evaluate the possibility of moving blended biodiesel to every market on the Plantation system."

For more information, call 713-369-8060.

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