By OGJ editors
HOUSTON, Dec. 5 -- Kinder Morgan Energy Partners LP (KMEP) reported it has acquired a 172 mile portion of a Texas pipeline from TEPPCO Partners LP for $30 million. KMEP intends to convert the line from oil to natural gas, which will serve Texas' capital of Austin.
KMEP also plans to construct a 5-mile lateral for the line.
The 24-in. intrastate natural gas pipeline will operate between Katy, Tex., and Austin and will provide an additional 170 MMCFD to the capital city.
Austin Energy, the city-owned electric utility, has entered into a long-term contract for firm transportation and storage services, primarily to provide gas supply to its Sand Hill power plant, which is now being expanded to 480 Mw from 180 Mw. The natural gas LDC has also signed a long-term contract to support the project.
KMEP's Texas intrastate gas pipeline group comprises about 5,800 miles of pipeline with a peak capacity of about 5 bcfd of gas and more than 30 bcf of gas storage capacity.