Kinder Morgan and Cheniere Announce Long-Term Transportation and Storage Agreements

HOUSTON--(BUSINESS WIRE)-- Kinder Morgan, Inc. (NYSE: KMI) today announced that Kinder Morgan Texas Pipeline, Kinder Morgan Tejas Pipeline and Tennessee Gas Pipeline Company (TGP) have entered into 15-year firm transportation agreements and a multi-year storage agreement with Cheniere Energy, Inc. (NYSE MKT: LNG) through its subsidiary, Corpus Christi Liquefaction, LLC. Under the agreements, KMI will provide 550,000 dekatherms per day (Dth/d) of firm natural gas transportation service, as well as 3 billion cubic feet (Bcf) of natural gas storage capacity to serve the LNG export facility being developed near Corpus Christi. The project is being designed and permitted for up to three trains, with aggregate design production capacity of approximately 13.5 million tonnes per annum (mtpa) of LNG. The natural gas transportation service can be increased to 800,000 Dth/d upon the completion of certain conditions in the Kinder Morgan Texas Pipeline agreement.

KMI will expand its existing Texas intrastate pipeline system in South Texas to provide 250,000 Dth/d of firm transportation and 100 percent of the storage services, and expand its TGP Pipeline to provide 300,000 Dth/d of firm transportation from various Zone 1 receipt points near its Station 87 Pool located in Portland, Tennessee. The construction of the facilities necessary to support these services will be coordinated with the startup of the LNG export facility, which is expected in 2018/2019. KMI expects to invest approximately $187 million for this project.

“We are pleased to provide transportation and storage services that access diverse supply basins to Corpus Christi Liquefaction for this LNG export opportunity,” said Tom Martin, KMI’s president of Natural Gas Pipelines. “The need for additional natural gas transportation services continues to increase, and Kinder Morgan’s portfolio of natural gas assets across the United States is well positioned to serve infrastructure expansion opportunities and meet increasing market demand.”

“This agreement builds on our existing relationship with Kinder Morgan, which will also service a portion of our Sabine Pass Liquefaction terminal in Louisiana, and moves us closer to securing the supply infrastructure needed to provide natural gas to our Corpus Christi LNG export facility,” said Corey Grindal, vice president of Supply and Marketing for Cheniere. “Access to multiple and diverse supply basins and an extensive pipeline network are both important factors for securing the natural gas required to meet our customers’ needs.”

The agreements are subject to, among other things, Corpus Christi Liquefaction making a final investment decision to construct the Corpus Christi Liquefaction Project.

About Kinder Morgan

Kinder Morgan, Inc. (NYSE: KMI) is the largest energy infrastructure company in North America. It owns an interest in or operates approximately 80,000 miles of pipelines and 180 terminals. The company’s pipelines transport natural gas, gasoline, crude oil, CO₂ and other products, and its terminals store petroleum products and chemicals, and handle bulk materials like coal and petroleum coke. Kinder Morgan is the largest midstream and third largest energy company in North America with an enterprise value of more than $125 billion. For more information please visit www.kindermorgan.com.

About Cheniere Energy

Cheniere Energy, Inc. (NYSE MKT: LNG) is a Houston-based energy company primarily engaged in LNG-related businesses. Its subsidiary, Cheniere Energy Partners, L.P. (NYSE MKT: CQP), is developing a liquefaction project adjacent to the existing regasification facilities at the Sabine Pass LNG terminal, and will include up to six LNG trains with aggregate design production capacity of up to 27 mtpa. Construction has begun on the first four LNG trains. Cheniere has also initiated a project to develop liquefaction facilities near Corpus Christi, Texas, which will include up to three LNG trains with aggregate design production capacity of up to 13.5 mtpa. Upon completion of certain conditions precedent, construction is expected to commence on the Corpus Christi liquefaction project in early 2015. Additional information about Cheniere Energy, Inc. may be found on its website located at http://www.cheniere.com.

Kinder Morgan Cautionary Language:

This news release includes forward-looking statements. These forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although Kinder Morgan believes that these forward-looking statements 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 include those enumerated in Kinder Morgan’s reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, Kinder Morgan undertakes no obligation to update or review any forward-looking statement because of new information, future events or other factors. Because of these uncertainties, readers should not place undue reliance on these forward-looking statements.

Cheniere Energy Cautionary Language:

This press release contains certain statements that may include "forward-looking statements" within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, (i) statements regarding Cheniere's business strategy, plans and objectives, including the construction and operation of liquefaction facilities, (ii) statements regarding our expectations regarding regulatory authorizations and approvals, (iii) statements expressing beliefs and expectations regarding the development of Cheniere's LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third parties, (v) statements regarding potential financing arrangements and (vi) statements regarding future discussions and entry into contracts. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere's periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements.

Kinder Morgan, Inc.
Media Relations
Melissa Ruiz, (713) 369-8060
melissa_ruiz@kindermorgan.com
or
Investor Relations
(713) 369-9490
km_ir@kindermorgan.com
www.kindermorgan.com
or
Cheniere Energy, Inc.
Investors
Randy Bhatia, (713) 375-5479
or
Christina Burke, (713) 375-5104
or
Media
Faith Parker, (713) 375-5663

Source: Kinder Morgan, Inc. and Cheniere Energy, Inc.

Released December 10, 2014