KMP to acquire facility from Texas Genco
Aug 1, 2005 12:00 PM
Kinder Morgan Energy Partners LP has agreed to acquire a natural gas storage facility in Liberty County, Texas, from Texas Genco for approximately $51 million in cash plus $49 million of debt. The Dayton storage facility has about 6.3 billion cubic feet (Bcf) of total capacity, consisting of 4.2 Bcf of working capacity and 2.1 Bcf of pad gas.
Richard D Kinder, chairman and chief executive officer, said, “This is a strategic acquisition that complements our existing Texas Intrastate Pipeline Group assets and positions the company to pursue expansions at Dayton that will provide needed services to utilities, the growing liquefied natural gas (LNG) industry along the Texas Gulf Coast, and other storage users. As part of this transaction, we have entered into a long-term storage capacity and transportation agreement with Texas Genco.”
The transaction is expected to close in the third quarter. The Dayton storage facility ties into KMP's Texas Intrastate Pipeline system, which currently consists of more than 5,800 miles of pipelines with a peak transport capacity of about 5 Bcf/day and about 120 Bcf of natural gas storage capacity. Texas is the largest producer and consumer of natural gas in the United States.
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