Aug 20 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
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.