UPDATE 1-Kinder Morgan Energy to sell Rockies assets for $1.8 bln

Mon Aug 20, 2012 7:04pm IST

Related Topics

Stocks

   

Aug 20 (Reuters) - Kinder Morgan Energy Partners LP will sell its stake in a pipeline and related assets in the Rockies for $1.8 billion as part of a settlement with regulators to win approval for Kinder Morgan Inc's $23 billion buy of rival El Paso Corp.

The Federal Trade Commission (FTC) had approved the El Paso acquisition in May on the condition that Kinder Morgan Inc would sell three U.S. natural gas pipelines and other related assets in the Rocky Mountain region.

Kinder Morgan Energy Partners said it would sell the Kinder Morgan Interstate Gas Transmission, Trailblazer Pipeline Company, the Casper-Douglas natural gas processing and West Frenchie Draw treating facilities in Wyoming and a 50 percent interest in the Rockies Express Pipeline to Tallgrass Energy Partners LP.

The deal is valued at $3.3 billion including debt.

The transaction, which is subject to FTC approval, is expected to close in the fourth quarter.

Barclays and Citi advised Kinder Morgan Energy Partners.

Kinder Morgan, which owns more than 38,000 miles of pipelines, announced in October that it would buy El Paso. El Paso then owned the largest natural gas pipeline system in North America, with more than 43,000 miles of pipelines.

The deal raised fears the combined company would be able to demand higher transport fees from oil and gas producers.

Kinder Morgan Inc shares were up 1.6 percent at $34.77 on Monday on the New York Stock Exchange.

FILED UNDER:

Reuters Showcase

Markets Weekahead

Markets Weekahead

Focus on sectors which will build India: Ambareesh Baliga.  Full Article 

FMC-SEBI Merger

FMC-SEBI Merger

Regulatory shakeup could revive commodities markets   Full Article 

Tax Incentives

Tax Incentives

Budget woos foreign investors  Full Article 

Excise Duty

Excise Duty

Cigarette makers fall after budget hikes excise duty  Full Article 

Welcoming the Budget

Welcoming the Budget

India Inc cheers corporate tax cut, simpler rules  Full Article 

Gold Price

Gold Price

Gold prices to rise after budget keeps import duty high  Full Article 

Fuel Prices

Fuel Prices

IOC to raise diesel, petrol prices from Sunday  Full Article 

Moody's on Budget

Moody's on Budget

Budget "credit neutral" from a ratings perspective - Moody's   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage