HOUSTON--(BUSINESS WIRE)--Kinder Morgan Energy Partners, L.P. (NYSE:KMP - News) today announced it has acquired two pipeline systems from Knight Inc., the private entity which owns the general partner of KMP. The purchase includes Knight’s one-third interest in the Express-Platte crude oil pipeline systems that run from Alberta to Illinois and a jet fuel pipeline that serves the Vancouver, British Columbia, airport. KMP paid Knight approximately 2 million KMP units (approximately $116 million) for the assets.“These pipelines are stable assets and this acquisition is expected to be immediately accretive to cash available for distribution to unitholders,” KMP Chairman and CEO Richard D. Kinder said. He noted that as a result of this transaction all Kinder Morgan Canada assets are now part of KMP.
The approximately 1,700-mile Express-Platte pipeline systems stretch from Hardisty, Alberta, to Casper, Wyo., and on to Wood River, Ill. The crude pipeline has a design capacity of 280,000 barrels per day (bpd) from Canada to Casper and 150,000 bpd from Casper to Wood River. KMP will own one-third of Express-Platte and operate the asset. The jet fuel pipeline is a 6-inch, 25-mile line that transports jet fuel from Vancouver area refineries and marketing terminals from KMP’s Westridge Marine Terminal to the Vancouver International Airport.
Kinder Morgan Energy Partners, L.P. (NYSE: KMP - News) is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates more than 25,000 miles of pipelines and 165 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle bulk materials like coal and petroleum coke. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of over $22 billion. The general partner of KMP is owned by Knight Inc. (formerly Kinder Morgan, Inc.), a private company.
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