Global GDP could be boosted…
The South Pars offshore field…
On Tuesday Kinder Morgan Energy Partners completed a deal to buy Copano Energy for $3.9 billion.
The purchase will help to boost KMPs advanced position in North American shale gas, adding an extra 6,900 miles of pipeline to their current network of 46,000 miles, giving it processing facilities in plays such as the Eagle Ford in Texas, and adding nine processing plants to its repertoire.
Copana Energy, a Houston-based energy company, mainly operates in Texas, Oklahoma, and Wyoming, and provides services such as gathering, processing, treating, and liquids fractionation.
Related article: This Week in Energy - 1st February 2013
The acquisition will give KMP 100% ownership of Eagle Ford Gathering, a company that provides all gathering, transportation, and processing services to the Eagle Ford Shale play.
Richard D. Kinder, the CEO and Chairman of KMP, announced his excitement at the deal and the possibilities that it brings to his company.
“We are delighted to have reached this agreement with Copano, a company that we know very well and have partnered with through the years, as this transaction will enable us to significantly expand our midstream services footprint. As a result of this acquisition, we will be able to pursue incremental development in the Eagle Ford Shale play in south Texas, gain entry into the Barnett Shale Combo in north Texas and the Mississippi Lime and Woodford Shales in Oklahoma. We continue to be bullish on the domestic shale plays and believe they will drive substantial future growth at KMP. Copano’s assets are very complementary to ours, as KMP is principally a pipeline transportation and storage company, while Copano is primarily a fee-based gathering, processing and fractionation player. Broadening our midstream assets will allow us to offer a wider array of services to our customers.”
By. Joao Peixe of Oilprice.com
Joao is a writer for Oilprice.com