Kinder Morgan Energy gets 25-year gas deal
HOUSTON (AP) — Kinder Morgan Energy Partners LP said Wednesday that its El Paso Natural Gas business and its parent Kinder Morgan Inc. have reached a deal on a 25-year natural gas transportation agreement in connection with plans to build a new pipeline to Mexico.
Financial terms were not disclosed.
Under the terms of the deal, El Paso will initially provide about 200 million cubic feet per day of transportation capacity through a new, 60-mile pipeline that would extend from existing pipelines near Tucson, Ariz. and connect with a pipeline to be built in Mexico.
The pipeline's construction remains subject to federal regulatory approvals. El Paso plans to file applications for the needed permits early next year, Kinder Morgan Energy said.
If approved, construction on the pipeline is set to begin in the first quarter of 2014, with the pipeline expected to go into service in September 2014.
Kinder Morgan Energy's general partner is owned by energy company Kinder Morgan Inc.
In afternoon trading, Kinder Morgan Energy's units fell 40 cents to $77.71, while Kinder Morgan Inc. shares rose 24 cents to $32.48.