CMS Builds Gathering Presence
CMS Energy's subsidiary CMS Continental Natural Gas said it has
completed the acquisition of a 750-mile gathering system in north
central Texas from Koch Hydrocarbon Co. Terms of the deal were not
The purchase of the Breckenridge Crude Oil Gathering system from
the Koch Industries unit will augment the processing and gathering
assets located in the Panhandle regions of Texas and Oklahoma that
CMS Energy acquired from Continental Natural Gas in 1998, and
subsequently re-named CMS Continental Natural Gas, said spokesman
The Breckenridge system will double CMS Continental's gathering
holdings in the region to about 1,500 miles, he estimated. The
acquisition is part of the Dearborn, MI-based energy company's
efforts to increase its feed capacity into Panhandle Eastern Pipe
Line, which it is in the process of acquiring from Duke Energy.
The package sale of Panhandle, Trunkline Gas and Trunkline LNG
to CMS is pending before the Federal Trade Commission, and is
expected to be completed later this month, Farr said. Panhandle and
Trunkline will add 11,500 miles of mainline to CMS Energy's
pipeline portfolio and 3.5 Bcf/d of capacity.
CMS Continental said it plans to convert portions of the idle
Breckenridge system to natural gas service on a phased-in basis.
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