• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

KMP To Acquire Natural Gas Storage Facility In Texas

Posted on: Thursday, 1 September 2005, 03:01 CDT

Kinder Morgan Energy Partners, L.P. has agreed to acquire a natural gas storage facility in Liberty County, TX from Texas Genco for approximately $51 million in cash plus $49 million of debt. The Dayton storage facility has approximately 6.3 Bcf of total capacity, consisting of 4.2 Bcf of working capacity and 2.1 Bcf of pad gas.

According to Chairman and CEO Rich Kinder, "This is a strategic acquisition that complements our existing Texas Intrastate Pipeline Group assets and positions the company to pursue expansions at Dayton that will provide needed services to utilities, the growing LNG industry along the Texas Gulf Coast and other storage users,"

The Dayton storage facility ties into KMP's Texas Intrastate Pipeline system, which is currently comprised of more than 5,800 miles of pipelines with a peak transport capacity of 5 Bcf/d and approximately 120 Bcf of natural gas storage capacity.

Kinder Morgan Energy Partners, L.P. also announced two separate terminal acquisitions totaling $48 million, including capital to enhance operational efficiency, and an additional $48 million investment for two major terminal expansion projects. The largest of the transactions is the purchase of a refined petroleum products terminal in New York Harbor from ExxonMobil Oil Corp. The other acquisition involves a dry-bulk river terminal in Kentucky from Southern Shores Terminal. The expansion projects will take place at the company's existing liquids terminal complex on the Houston Ship Channel and its Shipyard River bulk terminal in South Carolina.

Copyright Oildom Publishing Company of Texas, Inc. Aug 2005

Source: Pipeline & Gas Journal

More News in this Category