East Line Expansion Complete

Kinder Morgan Energy Partners, L.P. today announced it has completed & placed into service the $210 million East Line expansion that increases pipeline capacity from El Paso, Texas, to Tucson & Phoenix, Ariz., & will result in more gasoline, jet fuel & diesel being available for Arizonans. The expansion replaced more than 230 miles of 8-inch diameter pipeline between El Paso & Phoenix with new state-of-the-art 16" & 12" diameter pipe.

The project included construction of a new pump station & a 490,000 barrel tank facility near El Paso & upgrades to current stations & terminals between El Paso & Phoenix. The expansion increased capacity on the East Line - by more than 50% between El Paso & Tucson to approx., 147,000 barrels per day (bpd), & by roughly 80% to about 99,000 bpd between Tucson & Phoenix. The other pipeline serving Arizona, the WestLine, originates near Los Angeles, & has a transportation capacity of approx., 204,000 bpd to Phoenix.

The East Line is part of KMP's Pacific Operations which serve 6 western states with approx., 3,200 miles of refined petroleum products pipelines & related terminal facilities. The regulated, common-carrier pipelines transport over 1 million barrels of gasoline, jet fuel & dieseldaily into some of the fastest growing population centers in the U.S., such as Phoenix, Los Angeles & Las Vegas.

On Aug. 4th, '05, KMP announced plans for a further expansion of the East Line, which will replace approx., 140 miles of 12" diameter pipe between El Paso & Tucson with new 16" diameter pipe along with additional pumping capacity & new tanks at Tucson. Engineering design & the permitting process are currently underway, with construction expected to begin May '07 & completion scheduled for the 4th quarter of '07. This project will increase East Line capacity by another 8% & provide the platform for further incremental expansions through horsepower additions to the system.