Kinder Selling Gathering to MDU
Houston-based Kinder Morgan Inc. has agreed to sell three natural
gas gathering systems for nearly $21 million to WBI Holdings Inc., the
natural gas pipeline unit of MDU Resources Group Inc. The gathering
systems in Montana, Colorado, Kansas and Nebraska include operations
that were discontinued for divestiture last September as part of
Kinder's "back to basics" restructuring program (see NGI, Sept. 20, 1999).
MDU, headquartered in Bismarck, ND, will receive more than 1,000
miles of gathering lines, 14,000 hp of compression and a natural
gas processing facility. Kinder's divested assets include the
Bowdoin, Niobrara, and the Yenter Systems. They will be operated as
a part of WBI Holdings' pipeline and storage group and are all
close to existing systems operated by WBI. The acquisition is
expected to close later this month.
"Acquiring these assets will expand our gathering pipeline
system in areas where we are already active, providing for
additional development and growth opportunities not only for our
pipeline operations but also for our energy marketing and natural
gas production lines of business," said John K. Castleberry,
president of WBI Holdings, Inc.
"Upon completion of this sale, our divestiture program will be
more than 90% complete," said Richard Kinder, CEO. "Going forward,
we will continue to concentrate on our midstream fee-based
businesses that produce stable earnings, have significant upside
potential and minimize commodity price risk."
Carolyn Davis, Houston
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