Kinder Morgan to acquire pipeline entity for $1.8 bln

USA

HOUSTON, November 7, 2023 – Kinder Morgan has decided to acquire NextEra Energy’s pipeline network in South Texas, USA, for USD 1.8 billion, the US pipeline operator announced on Monday.

The STX Midstream pipeline network includes seven pipelines stretching 744 kilometres with a combined capacity to transport 4.9 bcf per day. The pipelines mainly transport gas to South Texas and Mexico.

The acquisition includes a 90% stake in the NET Mexico pipeline, ownership of the 254-kilometre Eagle Ford Midstream system and a 50% stake in the Dos Caminos system, which is operated by Howard Energy Partners.

The pipelines all have services contracts with average lengths of more than 8 years. Around 75% of the business is supported by take-or-pay contracts.

The deal is expected to close in Q1 2024.

Kinder Morgan currently operates around 132,000 kilometres of pipeline and 140 terminals. The company has a storage capacity of around 700 bcf.

It also currently has renewable natural gas production of around 5.4 bcf, with an additional 1.5 bcf in development.

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