US-based pipeline transportation and energy storage company Kinder Morgan Energy Partners (KMP) has acquired the remaining 50% interest in El Paso Natural Gas Company (EPNG) and El Paso Midstream assets in Utah and South Texas from Kinder Morgan for $1.655bn.
Following the acquisition, the company now owns 100% of EPNG and the midstream assets and is expecting the deal to increase the cash availability for distribution among the company’s shareholders.
The acquired EPNG owns 10,200 miles of pipeline system that can transport about 5.6 billion cubic feet per day (Bcf/d) of gas.
The pipeline system delivers gas from the Anadarko, Permian, and San Juan basins to California, Texas, western states of US and northern Mexico.
EPNG also has a working gas storage capacity of 44Bcf.
As a part of the deal, KMP also acquired midstream assets, including Altamont gathering, processing and treating assets in Uinta Basin in Utah and the Camino Real gathering system in the Eagle Ford shale in South Texas.
The Altamont system includes more than 1,200 miles of pipeline infrastructure, over 450 well connections, and a gas processing plant of over 60 million cubic feet per day (MMcf/d) capacity, which can be expanded to 80MMcf/d.
The system also includes a 5,600 barrel per day (bpd) natural gas liquids fractionator.
The Camino Real Gathering System in South Texas has 150 MMcf/d of gas gathering capacity and 110,000 bpd of oil gathering capacity.