Kinder Morgan will raise the propane and E/P mix tariffs on its Cochin pipeline on 1 July in accordance with the Federal Energy Regulatory Commission's (FERC) indexation system.
Most major liquids pipelines are tied to FERC's indexation system, which mandates a regulated yearly increase in tariffs. This year indexed tariffs will increase 4.58pc from 1 July 2015 to 30 June 2016. The increase is determined by the 2014 producer price index for finished goods.
The tariff for transporting propane from the US-Canada border near Maxbass, North Dakota, to the border near Detroit, Michigan, will increase by 0.557¢/USG to 12.72¢/USG; the tariff for transporting E/P mix from the Enterprise Product Partner's terminal near Iowa City, Iowa, to the US-Canada border near Detroit, Michigan, will increase by 1.135¢/USG to 25.909¢/USG.
Although Kinder Morgan ceased shipping the two products the Cochin line last April, the company plans to ship propane and E/P the eastern portion of the line again in 2018 when its Utopia East pipeline is completed.
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