“Tallgrass Energy Partners is excited about the opportunity to acquire these premier midstream assets. We look forward to working with a talented group of Kinder Morgan employees and will leverage their integral experience as we continue the high level of operational performance of these assets, work to expand the asset base and grow the company. The conversion of the Pony Express Pipeline portion of KMIGT into oil service, the seamless transitioning of its gas customers, and placing it in service during the second half of 2014 will be a significant focus for near term growth. In addition, we will be exploring some promising growth projects on the east end of Rockies Express to maximize the potential of this state-of-the-art pipeline,” said Tallgrass CEO, David G. Dehaemers, Jr.
Tallgrass Energy Partners LP entered into a purchase and sale agreement with Kinder Morgan Energy Partners LP (KMP) to purchase Kinder Morgan Interstate Gas Transmission, Trailblazer Pipeline Company, the Casper-Douglas natural gas processing and West Frenchie Draw treating facilities in Wyoming and KMP’s 50% interest in the Rockies Express Pipeline (REX). The assets will be acquired by Tallgrass for a total cash consideration of approximately USD$1.8billion. This amount is equivalent to USD$3.3billion , including the proportionate amount of REX debt.
The transaction is subject to Federal Trade Commission approval and is expected to close in the fourth quarter of this year.