Friday 23 January 2015

US pipeline tycoon in $3bn oil, gas assets deal

One of the biggest pipeline operators in the US is to buy a pipeline network in a $3 billion (£2bn) deal.

Billionaire Richard Kinder, Chairman and CEO of Kinder Morgan, announced the firm will buy Hiland Partners, which builds and operates oil transportation pipelines and gas processing systems in the Bakken fields in North Dakota and Montana.

Hiland’s assets include the new Double H 84,000 barrels per day pipeline that will transport crude from North Dakota to Wyoming. It then interconnects with the Pony Express Pipeline for further transportation to Oklahoma.

The pipeline is scheduled to begin service by the end of this month.

Kinder Morgan owns an interest in or operates around 80,000 miles of pipelines and 180 terminals.

The deal, subject to regulatory approval, is expected to close in the first quarter of this year.