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KMI and Brookfield Infrastructure’s joint acquisition

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World Pipelines,

Kinder Morgan, Inc. (KMI) and Brookfield Infrastructure Partners L.P. have announced a definitive agreement whereby they will jointly acquire, from Myria Holdings, Inc., the 53% equity interest in Natural Gas Pipeline Company of America LLC (NGPL) not already owned by them for a total purchase price of approximately US$242 million.

Finance and ownership

KMI will pay approximately US$136 million and increase its ownership interest from 20% to 50%, and Brookfield Infrastructure will pay approximately US$106 million and increase its ownership from approximately 27% to 50%. The transaction values NGPL at a total enterprise value of US$3.4 billion, inclusive of existing debt.

NGPL – which is currently operated by KMI – is one of the largest interstate pipeline systems in the country, with approximately 9200 miles of pipeline, more than 1 million hp of compressor facilities and 288 billion ft3 of working gas storage.

Comments on the agreement

"We are extremely pleased to announce an agreement to acquire full ownership of NGPL in partnership with Brookfield. This partnership ensures that NGPL is positioned to take full advantage of future opportunities to provide natural gas transportation and storage services to its current and future customers," said KMI Chief Executive Officer Steve Kean.

"We are delighted to be strengthening our relationship with Kinder Morgan," said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure. "We look forward to working together to execute NGPL's growth strategy to achieve its potential."

Approvals and expectations

The transaction is expected to close later this year, and is subject to customary closing conditions, including regulatory approval. KMI will continue to operate NGPL, and expects that the transaction will be immediately accretive to KMI's cash available to pay dividends.

Edited from source by Stephanie Roker

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