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Kinder Morgan sells North System for $300M

July 2, 2007 at 1:56 PM

HOUSTON, July 2 (UPI) -- The Kansas to Chicago pipeline system owned by Houston's Kinder Morgan Energy Partners will be sold to ONEOK Partners.

The Texas energy group said its 1,600-mile North System pipeline that delivers natural gas liquids and refined petroleum products will be sold for $300 million. The price tag includes Kinder Morgan's 50 percent stake in the Heartland Pipeline Co., which consists of seven propane truck-loading terminals along the North system.

"The North System is a good asset and will be a more strategic fit for ONEOK Partners' natural gas liquids business. In return, KMP receives an attractive price, and we will be able to deploy this capital in areas that are a better strategic fit for us," said Kinder Morgan's chairman Richard Kinder.

The deal is expected to close before the end of the third quarter of this year.

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