Kinder Morgan Sells Tennessee Pipeline to Itself
Stories about pipelines are not very glamorous, but when the pipeline in question is one of the major pipelines that carries Marcellus Shale gas—it’s important nonetheless. This story is sort of inside baseball. Kinder Morgan, the country’s largest pipeline company, recently concluded the acquisition of another huge pipeline company—El Paso (for $21 billion). As part of the deal, for regulatory reasons, they are required to sell the Tennessee Gas Pipeline (TGP) and a half interest in the El Paso Natural Gas pipeline (EPNG). They just announced a deal to do so, selling it to Kinder Morgan Energy Partners, which is a subsidiary/related company to Kinder. So Kinder has sold a pipeline to itself, in essence.
Here’s the press release: