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
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 Morgans 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 companys terminals
business unit and will be charged with owning, leasing
and acquiring natural resource reserves, according to the
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 Morgans terminals
The company has more than $450 million in coal terminal
expansion projects under way and is pursuing
additional opportunities, according to Schlosser.