Kinder Morgan to acquire 50 per cent stake in Petrohawk unit
13 Apr 2010
Kinder Morgan Energy Partners, L.P., a leading pipeline transportation and energy storage company in North America, will acquire a 50 per cent stake in Petrohawk Energy Corp.'s natural gas gathering and treating business in the Haynesville Shale for $875 million in cash, the company said today.
The joint venture with Petrohawk will create the largest gathering and midstream business in the Haynesville Shale of northwest Louisiana, the company said.
The transaction is expected to be completed by the end of May 2010.
Petrohawk will continue to operate the business during a short transition period, after which a new company, KinderHawk Field Services LLC, owned 50:50 by Petrohawk and Kinder Morgan, will assume operations.
The assets consist of more than 170 miles of pipeline currently in service, which is expected to increase to about 375 miles of pipeline with projected throughput of over 800 million cubic feet per day by year-end 2010.
Additionally, the system's amine treating plants have a projected capacity of approximately 2,635 gallons per minute by year end.
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