KMP to Invest Up to $100 Million in Biodiesel Infrastructure

HOUSTON, Feb. 28 /PRNewswire-FirstCall/ -- Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced plans to invest up to $100 million to expand its terminal facilities to help serve the growing biodiesel market. KMP has entered into long-term agreements with Green Earth Fuels, LLC to build up to 1.3 million barrels of tankage that will handle approximately 8 million barrels of biodiesel production at KMP's terminals on the Houston Ship Channel, the Port of New Orleans and in New York Harbor. Green Earth Fuels has agreed to build biodiesel production facilities at various KMP terminal sites in these regions and has already begun construction on an 86 million gallon facility at KMP's Galena Park Terminal on the Houston Ship Channel that is expected to commence operations in July 2007.

"Expanding our facilities to store and transfer biodiesel will benefit producers and help meet the country's growing demand for additional energy resources," said KMP Terminals President Jeff Armstrong. Upon completion, these expansions are expected to be immediately accretive to distribution available to KMP unitholders.

In addition to biodiesel, KMP has significantly increased its handling of ethanol and continues to pursue additional ethanol opportunities in both its terminals and products pipelines business units. In 2006, KMP handled approximately 1.5 billion gallons of ethanol, almost 30 percent of the domestic ethanol market. The terminals group currently provides ethanol services at its facilities in Chicago, New York Harbor, Philadelphia, New Orleans, Los Angeles and Houston, while the products pipelines group provides storage and blending of ethanol at its terminals in California, Nevada, Arizona, Virginia and Florida.

"We look forward to continuing to work with producers and shippers to add incremental fee-based services and infrastructure at KMP that will help bring more renewable fuels to markets in the United States," Armstrong said.

Kinder Morgan Energy Partners, L.P. is one of the largest publicly traded pipeline limited partnerships in America and owns or operates more than 27,000 miles of pipelines and approximately 145 terminals. Its pipelines transport more than 2 million barrels/day of gasoline and other petroleum products and up to 9 billion cubic feet/day of natural gas; and, its terminals handle over 80 million tons of coal and other bulk materials annually and have a liquids storage capacity of about 70 million barrels for petroleum products and chemicals. KMP is also the leading provider of CO2 for enhanced oil recovery projects in the United States.

The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI) , one of the largest energy transportation, storage and distribution companies in North America. Combined, the two companies have an enterprise value of more than $35 billion.

Headquartered in Houston, Texas, Green Earth Fuels, LLC is a team of energy industry veterans focused on the development of a petroleum-friendly biodiesel infrastructure that provides the requisite scale, product quality and streamlined logistics necessary to reliably supply leading energy industry participants. The Green Earth Fuels biodiesel facilities will be embedded within the existing petroleum complex and will employ the rigorous quality standards and processes necessary to conform to both ASTM-D6751 and BQ9000 biodiesel specifications.

Green Earth Fuels, LLC is majority owned by Riverstone Holdings, LLC and The Carlyle Group through a controlling investment by the Carlyle/Riverstone Renewable Energy Infrastructure Fund I, L.P. and by Goldman Sachs through GS Power Holdings, LLC. For more information see, http://www.greenearthfuelsllc.com/.

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 Form 10-K and 10-Q as filed with the Securities and Exchange Commission.