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Chevron Secures Pipeline Transportation for Its Sabine Pass LNG Terminal Capacity


Agreement provides Chevron access to a broad range of U.S. gas demand centers

SAN RAMON, Calif., Nov. 7, 2005 – Chevron Global Gas today announced it has signed a binding agreement with Kinder Morgan Energy Partners, L.P. to be one of the anchor shippers in a 3.2 billion-cubic-feet-per-day (bcf/d) pipeline system to be connected to the Sabine Pass liquefied natural gas (LNG) terminal in Cameron Parish, La.

In this agreement, Chevron obtained up to 1.0 bcf/d capacity in a new-build pipeline and 0.6 bcf/d interconnect capacity to the existing pipeline operated by Natural Gas Pipeline Company of America (NGPL), a subsidiary of Kinder Morgan Inc., located adjacent to the Sabine Pass LNG terminal site. Combined, the new-build pipeline and interconnect capacity with NGPL will provide important take-away options for Chevron’s capacity at the Sabine Pass LNG terminal. This new pipeline system will provide access to Chevron’s Sabine and Bridgeline pipelines, which connect to Henry Hub.

“This agreement is key to advancing Chevron’s effort to provide the U.S. market with new sources of natural gas, and is a significant step forward in our overall strategy of building complete gas value chains,” said John Gass, president of Chevron Global Gas.

“This pipeline, combined with our capacity in the Sabine Pass LNG terminal, will allow us the unique opportunity to flexibly link all key consuming markets east of the Rockies with Chevron’s LNG projects,” said Randy Curry, president of Chevron Natural Gas.

Subject to regulatory approvals, the proposed 137-mile pipeline would extend to Evangeline Parish, La., and interconnect with 11 interstate pipelines that serve the eastern half of the United States. The new pipeline is planned to be in service in 2009, coinciding with Chevron’s Sabine Pass terminal commitments.

Chevron Corporation is one of the world’s leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on Chevron is available at


Editor’s Note: Chevron has 0.7 bcf/d regasification capacity, with an option to increase that capacity up to 1.0 bcf/d at Cheniere Energy Inc.’s 2.6 bcf/d Sabine Pass LNG terminal through a 20-year terminal use agreement. Construction started in March 2005.


Cautionary Statement Relevant to Forward-Looking Information for the Purpose of “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995.

Some of the items discussed in this press release are forward-looking statements about the effects of the transportation agreements on Chevron’s natural gas strategy. Words such as expected, planned and similar expressions are intended to identify such forward-looking statements. The statements are based upon management’s current expectations, estimates, and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company’s control and are difficult to predict. Among the factors that could cause actual results to differ materially are unknown or unexpected problems in the resumption of operations affected by Hurricanes Katrina and Rita and other severe weather in the Gulf of Mexico; changes in the demand for and supply of crude oil and natural gas; actions of competitors; the potential disruption or interruption of project activities due to war, accidents, political events, civil unrest or severe weather; inability or failure of the company’s joint-venture partners to fund their share of project expenditures; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Source: Chevron Corporation.


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