Released By Kinder Morgan Energy Partners, L.P. News Release
March 19, 2001


HOUSTON Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced that it has entered into a 10-year processing agreement with Duke Energy Merchants at three of KMP’s transmix processing facilities located in Indianola, Pa., Hartford, Ill. and Richmond, Va.

"This long-term agreement further strengthens our fee-based transmix processing business by virtually eliminating all of our commodity price exposure," said Richard D. Kinder, chairman and CEO of KMP. "We will receive a fee for processing the transmix, and Duke Energy Merchants will market the product. This is an ideal example of two companies working together, as we will be able to focus on our operational expertise, and Duke Energy Merchants will be able to utilize its marketing skills." KMP recently entered into a similar agreement with Duke Energy Merchants to market the transmix processed at KMP’s Colton, Calif. transmix processing facility.

KMP is the largest processor of transmix in the United States. Transmix is a by-product of refined products pipeline operations. It is created by the mixing of different specification products during pipeline transportation. Transmix processing plants split the transmix back into specification products, such as unleaded gasoline and diesel fuel.

Kinder Morgan Energy Partners, L. P. is the nation’s largest pipeline master limited partnership with an enterprise value of approximately $6.0 billion. It owns and operates one of the largest product pipeline systems in the country, serving customers across the United States with more than 10,000 miles of pipeline and over 20 associated terminals. Additional assets include 10,000 miles of natural gas transportation pipelines, plus natural gas gathering and storage facilities; 28 bulk terminal facilities, which transload more than 40 million tons of coal, petroleum coke and other products annually; and Kinder Morgan CO2 Company, L.P.

The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI), one of the largest midstream energy companies in America, operating more than 30,000 miles of natural gas and product pipelines. KMI also has significant retail distribution, electric generation and terminal assets. Combined, the two companies have an enterprise value of approximately $15 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 Form 10-K and 10-Q as filed with the Securities and Exchange Commission.

Contact: Dax Sanders, Kinder Morgan Investor Relations
Phone: 713/369-9103
24 Hour Phone: n/a
Contact: Larry Pierce, Kinder Morgan Media Relations
Phone: 713/369-9407
24 Hour Phone: n/a