By OGJ editors
HOUSTON, July 6 -- ConocoPhillips has exercised an option to acquire a 24% interest in the proposed $4.4 billion Rockies Express gas pipeline now and an additional 1% when construction of the system is completed in June 2009.
The 1,663-mile, 42-in. system—one of the longest in the US—will have the capacity to transport 1.8 bcfd of gas from Wyoming and Colorado to the upper Midwest and eastern US (OGJ, Mar. 20, 2006, p. 32).
Kinder Morgan Energy Partners LP, which will operate the line, currently owns a 51% equity interest that will become 50% when the project is completed and ConocoPhillips assumes its additional 1%. KMP said it has secured binding firm commitments for most of the line's capacity.
Sempra Pipelines & Storage holds the remaining 25% interest. No additional ownership changes are anticipated.
