Kinder Morgan Inc. (KMI) and Brookfield Infrastructure Partners LP will jointly acquire the 53% equity interest in Natural Gas Pipeline Co. of America LLC (NGPL), that they do not already own, from Myria Holdings Inc., KMI said Nov. 30. NGPL is currently operated by KMI.
The purchase price is about $242 million. KMI will pay about $136 million and increase its ownership interest to 50% from 20%. Brookfield Infrastructure will pay about $106 million and increase its ownership to 50% from about 27%. The transaction values NGPL at $3.4 billion including existing debt.
NGPL , is one of the country’s largest interstate pipeline systems, with about 9,200 miles of pipeline, more than 1 million horsepower of compressor facilities and 288 billion cubic feet of working gas storage.
The transaction is expected to close later this year subject to customary closing conditions including regulatory approval. KMI will continue operating NGPL.
Evercore was KMI’s strategic adviser. Bracewell & Guiliani and Weil, Gotshal & Manges were both KMI’s legal counsel to KMI. Cleary Gottlieb Steen & Hamilton was Brookfield Infrastructure’s legal counsel.
Houston-based Kinder Morgan Inc. is North America’s largest energy infrastructure company.
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