Kinder Morgan Announces Commercial In-Service of Southern and Northern California Renewable Diesel Hub Projects

Published 2 years ago via Business Wire

First of their kind in the United States to transport renewable diesel by pipeline to inland destinations for delivery to the market

Kinder Morgan, Inc. (NYSE: KMI) today announced the full commercial in-service of its Southern and Northern California renewable diesel (RD) hub projects. RD is an alternative fuel that allows trucks, trains and any equipment that uses diesel to operate with significantly lower life-cycle emissions. Now in full operation, Kinder Morgan’s RD hubs are the most efficient and least carbon intensive method of transporting this lower emissions fuel from the Los Angeles refinery basin to San Diego and the Inland Empire and from the San Francisco Bay area to Sacramento, San Jose and Fresno. The initial phases of both hubs are fully subscribed with customer commitments.

“We are very pleased to be advancing California’s climate goals through our Southern and Northern California RD hubs,” said KMI’s President of Products Pipelines Dax Sanders. “These projects present a significant opportunity to participate in the transition to lower emissions energy sources of the future while continuing to provide fuels still in demand today. We are confident that the best way to serve markets during this energy evolution is through an all-of-the-above energy mix. Pipelines continue to be the safest and most cost-efficient mode of long-haul transportation for liquid fuels.”

The Southern California hub, which provides a throughput of up to 20,000 barrels per day (bpd) of blended diesel across the two inland destination truck racks, has been delivering RD to San Diego since the beginning of February 2023, with deliveries to Colton recently commencing. The Southern California hub connects marine supplies of RD coming into the Ports of Los Angeles and Long Beach to the Los Angeles market via the truck rack at SFPP’s Carson Terminal and to KMI’s SFPP pipeline system for delivery to the Inland Empire and San Diego areas.

The Northern California hub, which provides a throughput in aggregate of 21,000 bpd of RD via the SFPP northern pipeline system from the San Francisco Bay area to KMI’s Bradshaw, Fresno and San Jose terminals, is now commencing movement of RD to those markets. KMI capitalized on existing infrastructure for the Northern California hub, with potential capacity expansions available in subsequent phases.

About Kinder Morgan

Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in North America. Access to reliable, affordable energy is a critical component for improving lives around the world. We are committed to providing energy transportation and storage services in a safe, efficient, and environmentally responsible manner for the benefit of people, communities and businesses we serve. We own an interest in or operate approximately 82,000 miles of pipelines, 140 terminals, 700 billion cubic feet of working natural gas storage capacity and have renewable natural gas generation capacity of approximately 2.2 Bcf per year of gross production with up to an additional 5.2 Bcf in development. Our pipelines transport natural gas, renewable fuels, refined petroleum products, crude oil, condensate, CO2 and other products, and our terminals store and handle various commodities including gasoline, diesel fuel, renewable fuel feedstocks, chemicals, ethanol, metals and petroleum coke. Learn more about our work advancing energy solutions on the lower carbon initiatives page at www.kindermorgan.com.

Important Information Relating to Forward-Looking Statements

This news release includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities and Exchange Act of 1934. Generally the words “expects,” “believes,” anticipates,” “plans,” “will,” “shall,” “estimates,” and similar expressions identify forward-looking statements, which are not historical in nature. Forward-looking statements in this news release include express or implied statements concerning the energy evolution and benefits of the renewable diesel hub facilities. 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 KMI believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance as to when or if any such forward-looking statements will materialize or their ultimate impact on KMI’s operations or financial condition. Important factors that could cause actual results to differ materially from those expressed in or implied by these forward-looking statements include the risks and uncertainties described in KMI’s reports filed with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year-ended December 31, 2022 (under the headings “Risk Factors” and “Information Regarding Forward-Looking Statements” and elsewhere) and its subsequent reports, which are available through the SEC’s EDGAR system at www.sec.gov and on KMI’s website at ir.kindermorgan.com.

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