KMP To Acquire Copano For $5 Billion

March 2013, Vol. 240, No. 3

Kinder Morgan Energy Partners, L.P. is buying Copano Energy, L.L.C. for $5 billion. Copano, a midstream natural gas company with operations primarily in Texas, Oklahoma and Wyoming, provides services to natural gas producers, including natural gas gathering, processing, treating and natural gas liquids fractionation.

Copano owns an interest in or operates about 6,900 miles of pipelines with 2.7 Bcf/d of natural gas throughput capacity and nine processing plants with more than 1 Bcf/d of processing capacity and 315 MMcf/d of treating capacity.

“As a result of this acquisition, we will be able to pursue incremental development in the Eagle Ford Shale play in South Texas, gain entry into the Barnett Shale Combo in north Texas and the Mississippi Lime and Woodford Shales in Oklahoma. We continue to be bullish on the domestic shale plays,” said Kinder Morgan CEO Rich Kinder.

Kinder Morgan Energy Partners also announced an expansion project and acquisition to provide additional infrastructure to help meet growing demand for liquids storage and dock services along the Gulf Coast. The combined investment of $170 million will include purchase of 42 acres, construction of a ship dock to handle ocean going vessels and building 1.2 MMbbl of liquids storage tanks. It will be possible to add a second phase of storage tanks in the future.

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