Kinder Morgan Inc. (KMI), Kinder Morgan Energy Partners LP (KMP) and El Paso Pipeline Partners LP (EPB) announced the preliminary results of the elections made by KMP and EPB unitholders for their preference as to the form of consideration they will receive in the pending mergers with KMI, which are expected to close (Wednesday) Nov. 26 (see Daily GPI, Aug. 11). Unitholders had the option to elect, for each KMP or EPB common unit held, either cash, KMI common stock, or a combination of each. Among KMP unitholders, 61.3% of outstanding units were assigned a KMP stock election; 0.9% of outstanding units were opted for a cash election; 10.1% were a combination, and holders of 27.7% of outstanding units did not make an election by the deadline and are deemed to have selected the mixed option. Among EPB unitholders, 69.5% of outstanding common units were committed to a stock election; 7.9% were committed to a cash election; 9.7% were mixed, and holders of 13% of outstanding units did not make an election by the deadline and are deemed to have selected the mixed option.
Plains All American Pipeline LP plans to increase takeaway capacity of its Cactus Pipeline in response to rising production forecasts and producer demand. The company said it will add more pumps to the system at booster stations along the pipeline, which runs from McCamey to Gardendale in La Salle County, TX, resulting in an increase in throughput from 250,000 b/d to 330,000 b/d. The Cactus expansion, in conjunction with the previously announced Eagle Ford Joint Venture Pipeline expansion (see Shale Daily, Nov. 5; Sept. 23, 2013), will allow Plains to move increased production from the Permian Basin to Corpus Christi and other delivery points along the system. The Cactus Pipeline is expected to be in service in April; the expansion is to be completed in the fourth quarter of 2015. Separately, Phillips 66 andEnergy Transfer Partners LP will hold a binding open season beginning Monday for crude oil pipeline transportation originating at Nederland, TX, for deliveries to various terminals and refineries in the vicinity of Lake Charles and St. James, LA.
Navitas Midstream Partners LLC has struck a long-term, fee-based agreement with an undisclosed independent producer to provide gathering and processing services in the northern Eagle Ford Shale in Brazos and Grimes Counties, TX. Navitas plans to construct the La Bahia system, which will consist of a 20-inch diameter gathering line that will deliver gas from Brazos County to Navitas' processing plant to be located in Grimes County. When fully completed in mid-2015, the cryogenic processing plant will have a capacity of 120 million MMcf/d. The La Bahia system will be at the intersection of multiple producing horizons, including the Eagle Ford and Woodbine.
Southcross Energy Partners LP has completed the acquisition of a natural gas gathering system in McMullen County, TX. The acquired system consists of eight miles of gathering pipelines within two miles of Southcross' existing rich gas pipeline network and services customers under acreage dedication contracts. The system was placed into service in 2010. The acquisition was funded through Southcross' revolving credit facility and is expected to be immediately accretive to distributable cash flow. Production from the system will be connected as soon as possible to Southcross' existing pipeline network to be processed at its facilities.
CorEnergy Infrastructure Trust Inc. has acquired MoGas Pipeline for $125 million. The 263-mile MoGas interstate gas pipeline originates in northeast Missouri and extends into western Illinois and central Missouri. Receipt points are with Mississippi River Transmission Corp. in eastern St. Louis, and Panhandle Eastern Pipe Line Co. and Rockies Express Pipeline on the northern end of the system. Primary customers are Laclede Gas Co. and Ameren Missouri, both serving the St. Louis metropolitan area with gas distribution services; and subsidiary Omega Pipeline, serving Ft. Leonard Wood in central Missouri. MoGas was created in 2008 by combining Missouri Interstate Gas LLC, Missouri Gas Co. LLC and Missouri Pipeline Co. LLC. CorEnergy also amended its revolving credit facility for up to $93 million.