Kinder Morgan and Sempra Energy begin open season for eastward extension of Rockies Express Pipeline project

Media Contact:
Jennifer Andrews

Media Contact:
Rick Rainey

Sempra Energy

Kinder Morgan

(877) 866-2066

(713) 369-9452

www.sempra.com

www.kindermorgan.com

 

        HOUSTON, June 20, 2006 – Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and Sempra Pipelines & Storage, a unit of Sempra Energy (NYSE: SRE), today announced the start of a binding open season to solicit support to extend the Rockies Express Pipeline (REX) east from its currently proposed terminus at the Clarington Hub in Monroe County, Ohio, to Oakford, Pa.  The approximately 100-mile pipeline extension would also pass through Waynesburg, Pa., and is designed to provide up to 1.8 billion cubic feet per day (Bcf/d) of firm transportation capacity.  The extension would feature additional compression and interconnects to several major interstate natural gas pipeline systems serving the northeastern United States.

        “We are excited about the possibility of extending the Rockies Express Pipeline, which would provide consumers in several high-demand markets along the East Coast significantly enhanced access to reliable, long-lived domestic sources of natural gas,” said Scott Parker, president of KMP’s Natural Gas Pipelines group.  “All aspects of the Rockies Express project remain on schedule,” he added.

        The open season, which began today, ends Friday, July 14, 2006, at 5 p.m. MDT.  Subject to shipper support and regulatory approval, the extension is expected to begin service January 1, 2010. Information related to the open season can be obtained by contacting Jeff Rawls at Kinder Morgan (303) 914-4903 or Ryan O’Neal at Sempra Pipelines & Storage (619) 696-4585.   

        The 1,663-mile, $4.4 billion REX project, which is designed to transport natural gas from producing areas in Colorado and Wyoming, is the largest pipeline built in the United States in more than 20 years.  The initial 136-mile, 36-inch segment that runs from the Meeker Hub in Rio Blanco County, Colo., to the Wamsutter Hub in Sweetwater County, Wyo., was approved for service in February 2006.  Construction on the 192-mile stretch from the Wamsutter Hub to the Cheyenne Hub in Weld County, Colo., will begin this summer, with service expected to begin in January 2007.  In May 2006, KMP and Sempra Pipelines & Storage filed an application with the Federal Energy Regulatory Commission (FERC) to construct the REX-West portion of the pipeline from the Cheyenne Hub to Audrain County, Mo.  The 713-mile segment is projected to begin service in January 2008.  The application pre-filing process for REX-East, which runs from Audrain County to the Clarington Hub, was initiated with FERC in June 2006.  Pending regulatory and environmental approvals, the 622-mile segment is expected to begin service in June 2009.     

        Additional information related to the binding open season, including a map and detailed procedures, is available on the REX web page at www.kindermorgan.com.    

        Kinder Morgan Energy Partners, L.P. is one of the largest publicly traded pipeline limited partnerships in America and owns or operates more than 27,000 miles of pipelines and approximately 145 terminals.  Its pipelines transport more than 2 million barrels/day of gasoline and other petroleum products and up to 9 billion cubic feet/day of natural gas; and, its terminals handle over 80 million tons of coal and other bulk materials annually and have a liquids storage capacity of about 70 million barrels for petroleum products and chemicals.  KMP is also the leading provider of CO2 for enhanced oil recovery projects in the United States.

        The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI), one of the largest energy transportation, storage and distribution companies in North America.  Combined, the two companies have an enterprise value of more than $35 billion. 

        Sempra Pipelines & Storage acquires, builds and operates natural gas pipelines and storage facilities in Mexico and the United States.  Sempra Energy, based in San Diego, is a Fortune 500 energy-services holding company with 2005 revenues of $11.7 billion.  The Sempra Energy companies’ 14,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia.

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.

This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  When Sempra Energy uses words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” “should” or similar expressions, or when Sempra Energy discusses its strategy or plans, the company is making forward-looking statements.  Forward-looking statements are not guarantees of performance.  They involve risks, uncertainties and assumptions.  Future results may differ materially from those expressed in the forward-looking statements.  Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, the California

State Legislature, the California Department of Water Resources, the Federal Energy Regulatory Commission and other regulatory bodies in the United States and other countries; capital markets conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental, and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company.  These risks and uncertainties are further discussed in the company’s reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, www.sec.gov and on the company’s Web site, www.sempra.com.

Sempra Pipelines & Storage is not the same company as the utilities, SDG&E or SoCalGas, and Sempra Pipelines & Storage is not regulated by the California Public Utilities Commission.


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