Kinder Morgan buys additional interest in Cochin gas liquids line

Jan. 7, 2002
Kinder Morgan Energy Partners LP (KMP) has agreed to buy another 10% of an Alberta-to-Ontario pipeline, bringing its stake to 45%. KMP will pay NOVA Chemicals Corp. $29 million in cash for the interest in the Cochin gas liquids pipeline.

By the OGJ Online Staff

HOUSTON, Jan. 7 -- Kinder Morgan Energy Partners LP (KMP) has agreed to buy another 10% of an Alberta-to-Ontario pipeline, bringing its stake to 45%.

KMP will pay NOVA Chemicals Corp. $29 million in cash for the interest in the Cochin gas liquids pipeline. The line is a joint venture of KMP, BP PLC, and Conoco Inc.

Cochin Pipeline, built in the late 1970s, consists of 1,900 miles of 12-in. pipe between Fort Saskatchewan and Sarnia. It can carry 112,000 b/d of high vapor pressure ethane, ethylene, propane, butane, and natural gas liquids to the US Midwest and eastern Canadian petrochemical and fuel markets.

The deal is subject to rights-of-first-refusal from the other Cochin Pipeline owners. Closing is expected in February. The transaction will be effective Dec. 31, 2001.

Also, KMP, through its subsidiary Kinder Morgan CO2 Co., has purchased Torch E&P Co.'s interest in the Snyder gasoline plant and will become operator of the plant. Kinder Morgan CO2 also agreed to purchase Torch's interest in the Diamond M Gas Plant.

Both plants process gas produced by the Scurry Area Canyon Reef Operators Committee unit area in the Permian basin of West Texas. Kinder Morgan CO2 owns more than 80% of SACROC.