Kinder Morgan, Calpine Cancel Pipeline Project
Bloomberg News
Kinder Morgan Energy Partners and Calpine Corp. canceled development of a natural-gas pipeline that would have run from New Mexico to California, saying they haven’t received enough commitments from pipeline customers.
The 1,030-mile Sonoran Pipeline was to have been a 50-50 partnership between Houston-based Kinder Morgan and San Jose-based Calpine and was expected to begin service in 2004. Calpine, one of the largest U.S. power plant builders, originally was going to use about 50% of the pipeline’s capacity.
Kinder Morgan shares rose 5 cents to close at $33.05 on the NYSE. Calpine shares fell 43 cents to $7.64 on the NYSE.
The announcement was made after the close of U.S. trading.
