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Kinder Morgan to add natural resources to portfolio

Keywords: Tags  Kinder Morgan Energy Partners, natural resources, coal, Richard M. Whiting, John Schlosser, Thorsten Schier

NEW YORK — Kinder Morgan Energy Partners LP is looking to diversify into natural resources with “non-operating investments in coal and other mineral reserve properties and infrastructure,” the company said June 10.

“KMP will not actively engage in the mining of coal or other natural resources but will lease properties it acquires to various operators in exchange for royalty payments,” the Houston-based company said. “The lessees of the properties will manage any commodity price risk associated with the operations.”

“Because of market opportunities, we plan on starting with coal,” a company spokesman told AMM in an e-mail. “We handle in excess of 100 million tons of bulk commodities and over 650 million barrels of liquids. It is our intent to explore utilizing this platform in all areas where Kinder Morgan participates.”

Kinder Morgan’s pipelines transport natural gas, gasoline, crude oil and carbon dioxide, while its terminals handle and store petroleum products, chemicals, ethanol, coal, petroleum coke and steel, according to the company.

Richard M. Whiting, who has more than 35 years of experience in the coal industry, will lead the new unit, Kinder Morgan Resources LLC, as president, the company said.

The unit will operate within the company’s terminals business unit and will be charged with “owning, leasing and acquiring natural resource reserves,” according to the statement.

“This new business platform will enable us to increase the services we offer to our valued coal industry customers, as well as other extractive industry participants,” John Schlosser, president of Kinder Morgan’s terminals business, said.

The company has more than $450 million in coal terminal expansion projects “under way” and is pursuing “additional opportunities,” according to Schlosser.

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