Energy Central Professional

 

Kinder Morgan acquires Southcross Energy's certain natural gas assets


MarketLine  

 

    Kinder Morgan Tejas Pipeline (Tejas) has acquired certain natural gas pipeline assets from US-based midstream energy firm Southcross Energy for around $76m.

    As part of the acquisition, Kinder Morgan acquired Southcross Energy's natural gas pipeline network in Corpus Christi, Texas, and Bay City Lateral.

    The deal will enable Kinder Morgan to increase connectivity on the Texas intrastate network.

    Kinder Morgan Natural Gas Midstream president Sital Mody said: "We continue to focus on opportunities to increase our natural gas connectivity to meet LNG facilities, Gulf Coast power, industrial and petrochemical demand.

    "These assets are a nice complement to our existing Texas portfolio of assets and allow for further connectivity on our Texas Intrastate system."

    The completion of the acquisition comes after the receipt of approval for asset purchase agreements from the US Bankruptcy Court for the District of Delaware last month.

    Southcross Energy chairman, president and CEO James Swent III said: "Following a comprehensive review of available alternatives and working closely with our lenders, we determined that the best path forward for our gathering and processing operations is to complete the reorganisation process and emerge as a stronger, more profitable standalone business.

    "With the court's approval of our asset sales, along with this go-forward focus on our gathering and processing operations, we have made significant progress in our court-supervised process toward maximising the value of our assets and achieving the best outcome for our stakeholders."

    Kinder Morgan Tejas Pipeline is a system with approximately 3,500 miles of pipeline that purchases and sells natural gas in the Texas Intrastate market.

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