Kinder Morgan Inc. agreed to sell the capital stock of MidCon Gas Products of New Mexico Corp., a wholly owned subsidiary, to GPM Gas Corp., a unit of Phillips Petroleum, for $20 million in cash. Closing is expected by year-end. MidCon Gas Products owns the Big Eddy and Logans Draw gathering systems in Eddy County, NM. The combined systems include 159 miles of four- to ten-inch pipe with average throughput of 50 MMcf/d. Richard D. Kinder, CEO, said the sale is part of Houston-based Kinder Morgan’s back to basics strategy to divest of non-core assets. Sale proceeds will reduce debt.

Earlier this month, Duke Energy and Phillips said they would form a midstream company called Duke Energy Field Services (DEFS) (see Daily GPI . Expected to be worth between $5 and $6 billion, DEFS will result from a merger of Duke’s gathering and processing businesses (also called Duke Energy Field Services) with Phillips’ GPM unit. The new company, touted by its two creators as the largest midstream gas liquids business in the country, will have a strong position in most of the significant hydrocarbon basins in the continental United States.

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