Once the purchase is completed, Kinder Morgan, which is already the second biggest piper of natural gas in the US, will have pipeline interests serving a number of fossil fuel yielding regions of Canada. This includes the burgeoning oilsands of Western Canada, which currently produce one billion barrels of oil per day and are projected to double output by 2012.
The combined company will have approximately 40,000 miles of natural gas and petroleum transportation pipelines, more than 1.1 million natural gas distribution customers, approximately 150 terminals and an enterprise value of more than $19 billion.
The merged entity will also become the leader in the petroleum transportation industry in Canada with almost 13,000 miles of pipelines that transport approximately 2.7 million barrels per day of refined petroleum products and crude oil.
This transaction will combine two strong entities to create a premier energy company in North America with a bright future, said Kinder Morgan chairman and CEO Richard Kinder. It is a win-win transaction for both entities that is expected to produce immediate shareholder value through strong earnings and cash flow accretion, as well as provide exciting future growth opportunities.
