KM Energy Partners Lands Full Stake In El Paso Natural Gas Pipeline, Midstream Assets

April 2013, Vol. 240 No. 4

Kinder Morgan Energy Partners L.P. (KMP) has completed the acquisition of 50% of El Paso Natural Gas Co. LLC (EPNG) and 50% of former El Paso Midstream assets in Utah and South Texas from Kinder Morgan Inc. The transaction is valued at $1.6 billion. KMP now owns 100% of both EPNG and the midstream assets.

EPNG is a 10,200-mile system with design capacity of 5.6 Bcf/d. It transports natural gas from the San Juan, Permian and Anadarko basins to California, other western states, Texas and northern Mexico. EPNG has up to 44 Bcf of working natural gas storage capacity.

The midstream assets include Altamont gathering, processing and treating assets in the Uinta Basin in Utah and the Camino Real gathering system in the Eagle Ford shale in South Texas. The Altamont System has over 1,200 miles of pipeline infrastructure, over 450 well connections with producers, and operates a processing plant with a design capacity of over 60 MMcf/d of gas being expanded to 80 MMcf/d and a 5,600-bpd NGL fractionator. The Camino Real Gathering System has 150 MMcf/d of gas gathering capacity and 110,000 bpd of oil gathering capacity.

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