HOUSTON (AFX) - Gas distributor Kinder Morgan Energy Partners LP on Thursday said it plans to boost capacity with a $76 million expansion of its natural gas storage field in Liberty County, Texas.
Kinder Morgan said the new underground storage cavern will add about 5.5 billion cubic feet of gas storage capacity. Two existing caverns can hold about 4.2 billion cubic feet of gas.
Drilling of the new cavern is slated to begin later this month with completion targeted for 2009.
The expansion 'will greatly enhance storage options for natural gas coming from new and growing supply areas, including the Barnett Shale and Bossier plays in East Texas, and LNG (liquid natural gas) along the Texas Gulf Coast,' said Richard D. Kinder, chairman and chief executive.
The cavern will connect to Kinder Morgan's Texas intrastate pipeline, which has capacity to move some 5 billion cubic feet of gas per day. The pipeline currently has storage capacity of 120 billion cubic feet.
Shares of Kinder Morgan Energy Partners fell 34 cents to close at $45.50 on the New York Stock Exchange.
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