Kinder Morgan Inc. (KMI) and Brookfield Infrastructure Partners LP have agreed to pay $242 million for the 53% equity interest in Natural Gas Pipeline Company of America LLC that they don’t already own.
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The midstream segment is not quite as immune to the commodity price downturn as Kinder Morgan Inc. (KMI) investors might have hoped. The company has retreated from an earlier pledge of 10% dividend growth as third quarter earnings missed analyst expectations.
The way that production has been climbing in Marcellus-Utica Shale country, there could be enough to support two pipeline projects to carry natural gas liquids (NGL) from the region to the Gulf Coast, a Kinder Morgan executive allowed during an earnings conference call Wednesday. And the company is weighing other projects to move the region’s output into the Northeast.
While still awaiting aU.S. State Departmentgreen light on another U.S.-Mexico gas pipeline border crossing, Sierrita Lateral (seeDaily GPI,Aug. 13),Kinder Morgan’sEl Paso Natural Gasunit has moved ahead with the start of operations at its Norte Crossing facilities near El Paso, TX (seeDaily GPI,June 18). Up to 366 MMcf/d can now flow to a new delivery interconnection with the Tarahumara Pipeline at the U.S.-Mexico border beneath the Rio Grande River. Ultimate end-users include five new gas-fired power plants scheduled to be developed during the next 15 years by Mexico’s state-ownedComision Federal de Electricidad. The Norte II power plant was slated to start up earlier this month, drawing its fuel from the Norte Crossing tie-in.MGI Supply Ltd., a firm shipper on El Paso’s system, has a new agreement for capacity at the proposed Norte Crossing facility, allowing MGI to export gas from the United States to Mexico to serve the Norte II CFE power plant.