CMS Energy’s subsidiary CMS Continental Natural Gas said it hascompleted the acquisition of a 750-mile gathering system in northcentral Texas from Koch Hydrocarbon Co. Terms of the deal were notdisclosed.

The purchase of the Breckenridge Crude Oil Gathering system fromthe Koch Industries unit will augment the processing and gatheringassets located in the Panhandle regions of Texas and Oklahoma thatCMS Energy acquired from Continental Natural Gas in 1998, andsubsequently re-named CMS Continental Natural Gas, said spokesmanKelly Farr.

The Breckenridge system will double CMS Continental’s gatheringholdings in the region to about 1,500 miles, he estimated. Theacquisition is part of the Dearborn, MI-based energy company’sefforts to increase its feed capacity into Panhandle Eastern PipeLine, which it is in the process of acquiring from Duke Energy.

The package sale of Panhandle, Trunkline Gas and Trunkline LNGto CMS is pending before the Federal Trade Commission, and isexpected to be completed later this month, Farr said. Panhandle andTrunkline will add 11,500 miles of mainline to CMS Energy’spipeline portfolio and 3.5 Bcf/d of capacity.

CMS Continental said it plans to convert portions of the idleBreckenridge system to natural gas service on a phased-in basis.

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