ngi article on trailblazer sale to kmp kinder morgan to buy enron ' s share of trailblazer
kinder morgan energy partners l . p . announced wednesday it has signed a definitive agreement with enron trailblazer pipeline co . to acquire its 33 . 3 % share for $ 68 million cash . this will give kmp 100 % ownership in the 436 - mile line out of the rockies into the midwest .
kinder morgan is the operator of the pipeline that runs from rockport ( weld county ) , co , to beatrice ( gage county ) , ne .
" we are delighted to increase our ownership in trailblazer , which generates reliable cash flow and is expected to experience significant growth in 2002 once our current expansion project is completed , " said richard d . kinder , chairman of kmp . " upon closing , the transaction is expected to be immediately accretive to kmp unitholders . "
" we have been interested in increasing our ownership of the pipeline since we bought our initial interest in 1999 , " kinder said , adding the company has been negotiating with enron for several months . the transaction , which is expected to close in the first quarter of 2002 , is subject to standard closing conditions , as well as approvals by the court overseeing the enron bankruptcy and by the enron board of directors .
as previously announced , trailblazer is currently expanding its transportation capacity to 846 , 000 dth / d from 522 , 000 dth / d . the additional 324 , 000 dth / d of capacity , which is scheduled to come on - line in mid - 2002 , has already been fully subscribed in the form of long term , firm transportation contracts .
" we began the $ 58 million expansion project in august of this year , as significant growth in rocky mountain natural gas supplies had created the need for additional pipeline transportation infrastructure , " kinder explained . the expansion project includes installing two new compressor stations and adding additional horsepower at an existing compressor station .
through capital contributions , cig trailblazer gas co . - - an affiliate of el paso corp . - - is expected to become a 7 - 8 % equity owner in trailblazer in mid - 2002 when the additional capacity comes on - line .
ngi article on trailblazer sale to kmp
kinder morgan to buy enron ' s share of trailblazer
kinder morgan energy partners l . p . announced wednesday it has signed a definitive agreement with enron trailblazer pipeline co . to acquire its 33 . 3 % share for $ 68 million cash . this will give kmp 100 % ownership in the 436 - mile line out of the rockies into the midwest .
kinder morgan is the operator of the pipeline that runs from rockport ( weld county ) , co , to beatrice ( gage county ) , ne .
" we are delighted to increase our ownership in trailblazer , which generates reliable cash flow and is expected to experience significant growth in 2002 once our current expansion project is completed , " said richard d . kinder , chairman of kmp . " upon closing , the transaction is expected to be immediately accretive to kmp unitholders . "
" we have been interested in increasing our ownership of the pipeline since we bought our initial interest in 1999 , " kinder said , adding the company has been negotiating with enron for several months . the transaction , which is expected to close in the first quarter of 2002 , is subject to standard closing conditions , as well as approvals by the court overseeing the enron bankruptcy and by the enron board of directors .
as previously announced , trailblazer is currently expanding its transportation capacity to 846 , 000 dth / d from 522 , 000 dth / d . the additional 324 , 000 dth / d of capacity , which is scheduled to come on - line in mid - 2002 , has already been fully subscribed in the form of long term , firm transportation contracts .
" we began the $ 58 million expansion project in august of this year , as significant growth in rocky mountain natural gas supplies had created the need for additional pipeline transportation infrastructure , " kinder explained . the expansion project includes installing two new compressor stations and adding additional horsepower at an existing compressor station .
through capital contributions , cig trailblazer gas co . - - an affiliate of el paso corp . - - is expected to become a 7 - 8 % equity owner in trailblazer in mid - 2002 when the additional capacity comes on - line .