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CMS Builds Gathering Presence

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 disclosed.

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 Kelly Farr.

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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