KMI to Sell Corridor Pipeline to Inter Pipeline Fund

    HOUSTON, March 5 /CNW/ - Kinder Morgan, Inc. (NYSE:   KMI) today announced
it has entered into an agreement to sell the shares of the Corridor Pipeline
System to Inter Pipeline Fund in Canada for approximately C$760 million
including debt. Additionally, Inter Pipeline Fund will assume all of the debt
associated with the expansion currently taking place on Corridor. The pipeline
transports diluted bitumen from the Athabasca Oil Sands Project (AOSP) near
Fort McMurray, Alberta, to the Scotford Upgrader near Fort Saskatchewan,
    "While Corridor is an operationally sound and strategically located
pipeline, the sale of this asset will enable us to reduce debt and focus on
other exciting growth opportunities," said KMI Chairman and CEO Richard D.
    The transaction does not include any other Kinder Morgan Canada assets.
"We are diligently moving forward on plans to expand both the Trans Mountain
and the Express/Platte pipeline systems, and we will continue to pursue
additional infrastructure opportunities related to increasing oils ands
production," stated Kinder Morgan Canada President Ian Anderson. "For example,
we are in the midst of constructing our first major merchant terminal in
Edmonton, Alberta, and we will continue to pursue additional pipeline and
terminal projects."
    The transaction is subject to certain closing conditions and regulatory
approvals, as well as a right of first refusal, and is expected to close in
the second quarter of this year. The agreement to sell Corridor has been
approved by the KMI board of directors and the sponsors of the company's
pending privatization transaction. TD Securities Inc. acted as financial
advisor to KMI on the transaction.

    Kinder Morgan, Inc. is one of the largest energy transportation, storage
and distribution companies in North America. It owns an interest in or
operates approximately 43,000 miles of pipelines that transport primarily
natural gas, crude oil, petroleum products and CO2; more than 150 terminals
that store, transfer and handle products like gasoline and coal; and currently
provides natural gas distribution service to over 1.1 million customers. KMI
owns the general partner interest of Kinder Morgan Energy Partners (NYSE:  
KMP), one of the largest publicly traded pipeline limited partnerships in the
United States. Combined, the companies have an enterprise value of more than
$35 billion.

    This news release includes forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Although Kinder Morgan believes that its expectations
are based on reasonable assumptions, it can give no assurance that such
assumptions will materialize. Important factors that could cause actual
results to differ materially from those in the forward-looking statements
herein are enumerated in Kinder Morgan's Forms 10-K and 10-Q as filed with the
Securities and Exchange Commission.

For further information:

For further information: Larry Pierce, Media Relations, +1-713-369-9407,
or Mindy Mills, Investor Relations, +1-713-369-9490, both of Kinder Morgan,
Inc., Web Site:

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