The transaction worth $6.22bn allows KMP to more than replace cash flow from certain assets it is divesting pursuant to a deal Kinder Morgan reached with the Federal Trade Commission in order to complete the El Paso Corporation acquisition.
KMP anticipates that the combination of the divestitures and the purchase of these assets from Kinder Morgan will be slightly accretive to its distributable cash flow this year and improve thereafter.
TGP, a 13,900-mile pipeline system with a design capacity of about 7.5 billion cubic feet (Bcf) per day, transports natural gas from Louisiana, the Gulf of Mexico and South Texas to the northeastern US.
EPNG, a 10,200-mile pipeline system with a design capacity of about 5.6Bcf per day, transports natural gas from the San Juan, Permian and Anadarko basins to California, other western states, Texas and northern Mexico.
TGP and EPNG together have more than 200Bcf of working natural gas storage capacity.
KMP owns an interest in or operates nearly 29,000 miles of pipelines and 180 terminals, while Kinder Morgan owns an interest in or operates about 75,000 miles of pipelines and 180 terminals.
