Development of Sonoran Pipeline Project Halted

02/15/2002 
PR Newswire 
(Copyright (c) 2002, PR Newswire) 
HOUSTON, Feb. 15 /PRNewswire-FirstCall/ -- Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and Calpine Corporation (NYSE: CPN) today announced the termination of the proposed Sonoran Pipeline project. The Sonoran Pipeline was unable to secure sufficient binding commitments to make a successful project given market conditions. Securing firm transportation agreements was a stipulation that executives of both companies initially stated was necessary before development of the project could begin. Neither company has spent significant dollars on the proposed development of the pipeline and it was not expected to begin service until 2004. 
Both KMP and Calpine will continue to evaluate other opportunities to serve the growing California market. 
Phase I of the proposed Sonoran Pipeline would have extended from the Blanco Hub and terminated near Needles and Topock, Calif., with the possibility of a second phase extending into northern California. 
Based in San Jose, Calif., Calpine Corporation is an independent power company that is dedicated to providing customers with clean, efficient, natural gas-fired power generation. It generates and markets power, through plants it develops, owns and operates, in 29 states in the United States, three provinces in Canada and in the United Kingdom. Calpine also is the world's largest producer of renewable geothermal energy, and it owns 1.3 trillion cubic feet equivalent of proved natural gas reserves in Canada and the United States. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, visit its website at www.calpine.com . 
Kinder Morgan Energy Partners, L. P. is the nation's largest pipeline master limited partnership with an enterprise value of approximately $9 billion. KMP owns and operates more than 20,000 miles of pipelines and over 70 terminals. Its pipelines transport more than two million barrels per day of gasoline and other petroleum products and up to 4.3 billion cubic feet per day of natural gas. Its terminals handle over 50 million tons of coal and other bulk materials annually and have a liquids storage capacity of more than 53 million barrels for petroleum products and chemicals. KMP is also the leading provider in the U.S. of CO2, which is used in enhanced oil recovery projects.