By the OGJ Online Staff
HOUSTON, July 18 -- Kinder Morgan Energy Partners LP agreed to acquire a Texas natural gas pipeline system from an affiliate of Occidental Petroleum Corp. for $360 million.
Kinder Morgan will buy a partnership, Occidental Texas Pipeline Co., that owns the pipeline. The line transports gas from south Texas and the Texas Gulf Coast to the Houston-Beaumont area.
Occidental agreed to purchase gas from the pipeline at market prices for use in its chemical operations.
KMP currently leases and operates the assets.
"As the operator, we are very familiar with the assets involved in this transaction and their excellent growth potential," said KMP chairman and CEO Richard D. Kinder.
KMP said it has announced $500 million of accretive acquisitions in 2001.