Enbridge Energy Partners Tuesday agreed to sell its interstate natural gas transmission system, commonly known as the Kansas Pipeline System (KPC), to Quest Midstream Partners LP for $133 million in cash.

The KPC system extends from three branches, located in northeastern and northwestern Oklahoma and central Kansas, to serve natural gas markets in Wichita and Kansas City, MO. The system includes 1,120 miles of pipeline and three compressor stations.

Quest Midstream is a subsidiary of Quest Resources Corp., which agreed to a merger Tuesday with Pinnacle Gas Resources Inc. (see related story). Quest Resources is the largest producer of natural gas in the Cherokee Basin of southeast Kansas and northeast Oklahoma, and it operates more than 1,800 producing wells that produce into a 1,800-plus mile gathering pipeline system, which it controls.

The final sale price, said Enbridge, is subject to an adjustment for working capital at the close. Enbridge plans to use the proceeds to partially finance an ongoing $5 billion capital expansion project. The sale is expected to close in November. Enbridge’s gas gathering, treating, processing and transmission assets, which are principally located onshore in the Midcontinent and Gulf Coast area, deliver more than 2 Bcf/d.

©Copyright 2007Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.