North American energy infrastructure company Kinder Morgan is acquiring a natural gas gathering and processing system in North Dakota from Outrigger Energy II for $640m (€627m).
The NYSE-listed firm said the acquisition, which is being made by its subsidiary, Hiland Partners, includes a facility capable of processing 270m cubic feet per day (MMcf/d) and a 104-mile, large-diameter, high-pressure rich-gas gathering header pipeline with 350MMcf/d of capacity connecting supplies from the Williston Basin area to high-demand markets.
The gathering and processing system is backed by long-term contracts with commitments from major customers in the basin. Kinder Morgan said it expects the acquisition to be immediately accretive to its shareholders.
Tom Dender, president of Kinder Morgan’s natural gas midstream business, said: “We’re pleased to be integrating this complementary system with our existing Hiland gas assets to aggregate additional supplies from the Bakken.
“This strategic acquisition allows us to efficiently expand our footprint and provide incremental transportation and processing services to meet the growing needs of our customers.”
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