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Kinder Morgan Begins Biodiesel Shipments on Oregon Pipeline

Kinder Morgan Energy Partners, L.P. (NYSE:KMP) today announced it has started commercial transportation of blended 2 percent biodiesel (B2) through its 115-mile Oregon Pipeline that runs from Portland to Eugene. The company recently completed a successful test batch by moving B2 through the pipeline. Upon receipt of B2 at both its Portland and Eugene facilities, extensive tests were performed on the biodiesel blend to ensure that the samples met specifications. Kinder Morgan’s Oregon line is one of only a few pipelines in the United States able to regularly transport blended biodiesel, as this pipeline does not transport jet fuel, thereby eliminating the potential for “trailback” of product into subsequent jet fuel batches.

“This new biodiesel shipment capability will help diesel fuel suppliers throughout Oregon meet a state biodiesel mandate that goes into effect on Oct. 1,” said KMP Products Pipeline President Tom Bannigan. “We are transporting B2 in a way that’s operationally efficient, quality controlled and cost effective.”

The first commercial batch of approximately 100,000 barrels of B2 was created using a newly installed blending system to inject B99 into ultra low sulfur diesel at the company’s Willbridge terminal in Portland. Other area terminals are expected to be able to deliver B2 to the Kinder Morgan pipeline.

Kinder Morgan has undertaken additional renewable fuels projects at several of its Pacific Northwest facilities, including improvements to allow for the blending of biodiesel at the truck-loading rack at the Willbridge terminal and into barges at the Linnton terminal in Portland, which handled the first regional barge-load of B2 for upriver movement to Umatilla, Ore. In the company’s Southeast operations, Plantation Pipe Line Company (operated by Kinder Morgan), became the first pipeline in the country to transport biodiesel for commercial purposes in June.

KMP – Oregon Biodiesel

Kinder Morgan Energy Partners, L.P. (NYSE:KMP) is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates more than 28,000 miles of pipelines and 170 terminals. Its 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. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of approximately $25 billion. The general partner of KMP is owned by Kinder Morgan, Inc., a private company,

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