UPDATE 1-Kinder Morgan Energy to sell Rockies assets for $1.8 bln
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.
- Tweet this
- Share this
- Digg this
- Google launches new email service dubbed "Inbox"
- Lax security in focus after attack at Canada's parliament
- U.S.-led air strikes killed 521 fighters, 32 civilians in Syria - monitor
- India hope to get boxer Sarita Devi's suspension reversed
- Motor racing-Caterham F1 factory closed, team's fate in the balance
India could allow commercial coal mining by foreign companies if they set up units in the country, opening the door for global giants like Rio Tinto to access the world's fifth largest coal reserves, a source familiar with the matter said. Full Article