Kinder Morgan Buys Tejas
Thursday, December 27, 2001
Kinder Morgan Energy Partners LP of Houston entered into an agreement to purchase Tejas Gas LLC for approximately $750 million in cash. Tejas Gas, a subsidiary of InterGen (North America) Inc., has a transportation capacity of 3.5 Bcf of gas. The 3,400-mile Tejas intrastate pipeline system extends from South Texas along the Mexico border, traverses the Gulf Coast region to Louisiana. The deal would allow Kinder Morgan to gain access to new growing markets including Austin, Corpus Christi and Texas City. Tejas is a major provider of natural gas to refining, petrochemical, gas and electric utilities, independent power generation and industrial markets. Kinder Morgan said Tejas Gas was a good fit with its Kinder Morgan Texas Pipeline, a 2,600-mile intrastate pipeline.