The consideration is $300 million in KMEP common units.
The acquisition includes the Altamont natural gas gathering, processing, and treating assets in the Unita basin in Utah and the Camino Real Gathering System in the Eagle Ford shale play of Texas.
El Paso Corp., which Kinder Morgan Inc. is acquiring in a $38 billion deal, owns the other 50% of the joint venture (OGJ Online, Oct. 17, 2011).
The Altamont system includes 1,100 miles of gas gathering pipeline with more than 450 well connections, a gas processing plant with design capacity of 60 MMcfd, and a 5,600-b/d fractionator. The Camino Real Gathering System has capacities of 150 MMcfd of gas and 110,000 b/d of oil.
KKR bought its interest in the assets from El Paso Midstream Group Inc. in 2010 (OGJ Online, Dec. 7, 2010).