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Kinder Morgan, Inc.’s NGPL signs new transportation and storage contracts

HOUSTON, July 11, 2003 — Kinder Morgan, Inc., through its subsidiary Natural Gas Pipeline Co. of America (NGPL), has entered into new, long-term transportation and storage agreements that have virtually sold out firm capacity on the pipeline for the near future.

According to KMI Chairman and CEO Richard D. Kinder, NGPL has successfully replaced various firm capacity contracts that would have expired this year with multiple credit-worthy customers.

“At the beginning of 2003, 61 percent of NGPL’s long-haul contracted capacity was scheduled to expire during the year, whereas today NGPL is essentially sold out for long-haul firm transport capacity through October of 2003 and has 95 percent of its long-haul firm transportation under contract through March of 2004,” Kinder said. “In fact, due to successful re- contracting efforts, only 17 percent of NGPL’s long-haul capacity is scheduled to expire during 2004, and we expect the great majority of that will be re- contracted with current customers.”

NGPL, for example, entered into firm transportation service agreements with several customers to replace nearly 450,000 dekatherms per day of contracts that were originally held by Aquila Merchant Services Inc. and would have expired on Sept. 30, 2003 or earlier. A large percentage of the capacity, some of which had already been released to various parties, is now contracted with BP Energy Company, Tenaska Marketing Ventures, The Peoples Gas Light and Coke Co., Nicor Gas, and others for terms extending as long as May 31, 2006.

Additionally, NGPL has entered into several new firm storage contracts to replace contracts that expired earlier this year. At the end of the first quarter, NGPL had 25.4 billion cubic feet (Bcf) of firm storage available, much of which had been previously held by marketing companies that exited the trading business. Currently, NGPL has only 1.5 Bcf of firm storage available and market demand has grown stronger in recent weeks.

“We are pleased to enter into these new contracts and continue to grow our business with financially solid industry leaders like BP, Tenaska, Peoples, Nicor, and others,” Kinder said. “BP is now one of our largest customers, having increased its transportation service on NGPL by more than 250 percent and doubling its storage position.”

A 10,000-mile pipeline system with peak deliverability of 5.7 billion cubic feet per day, NGPL is the largest transporter of natural gas to the high-demand Chicago market. It is expected to contribute approximately 43 percent of KMI’s budgeted segment income in 2003.

Kinder Morgan, Inc. is one of the largest energy transportation and storage companies in America, operating more than 35,000 miles of natural gas and products pipelines and approximately 80 terminals. It also owns the general partner interest of Kinder Morgan Energy Partners, L.P. (NYSE: KMP – News), the largest publicly traded pipeline limited partnership in the U.S. in terms of market capitalization. Combined, the two companies have an enterprise value of approximately $20 billion.