The pipeline transportation and energy storage company has not disclosed the financial aspects of the deal.
Under the agreement, KMP will provide services to deliver 450,000 dekatherms per day (dth/d) and store five billion cubic feet (bcf) of natural gas to serve Calpine Energy’s nine electric generating plants in Texas, US.
The company is also planning to invest $30m to expand its Texas intrastate pipeline system in South Texas to provide services to Calpine’s natural gas-fired combine cycle generating facility Magic Valley Generating Station in Hidalgo County.
Calpine Energy Services Natural Gas Trading vice president Bob Hayes said that the continuous and reliable supply of natural gas is vital for the firm’s efforts to run the power plants efficiently.
"Expansion of our agreements with Kinder Morgan, a key business partner, will serve to support these efforts across most of our power plants in Texas," Hayes added.
The new agreement has increased the transportation services by 150,000 dth/d and storage capacity by one bcf.
