Kinder Morgan Buys Gas Pipeline From Occidental
|Wednesday, July 18, 2001
Kinder Morgan Energy Partners, L.P. has signed a definitive agreement to buy a partnership that owns a Texas natural gas pipeline system for $360 million. The acquisition, from an affiliate of Occidental Petroleum Corp., includes 2,600 miles of pipeline that primarily transports gas from south Texas and the Texas Gulf Coast to the greater Houston/Beaumont area. Currently, the assets are leased and operated by KMP as a major part of the Kinder Morgan Texas Pipeline (KMTP) business unit. Additionally, KMP signed a five-year agreement to supply approximately 90 billion cubic feet (Bcf) of natural gas to chemical facilities owned by Occidental affiliates in the Houston area. The transaction is subject to customary regulatory approvals and is expected to close in the third quarter of 2001.