Kinder Morgan closes Haynesville Shale pipeline JV with Petrohawk, creating KinderHawk Field Services

Source: Kinder Morgan

Kinder Morgan Energy Partners, L.P. (KMP) completed the purchase of a 50 percent interest in Petrohawk Energy Corporation’s (HK) natural gas gathering and treating business in the Haynesville Shale for approximately $921 million in cash, which includes about $46 million in capital expenditures less cash flow, reflecting activity since Jan. 1, 2010. 

The joint venture ultimately is expected to have approximately 2 billion cubic feet per day of mainline throughput capacity, which will make it one of the largest gathering and treating systems in the United States. 

Petrohawk will continue to operate the business during a short transition period, after which the new company, KinderHawk Field Services LLC, owned 50/50 by Petrohawk and Kinder Morgan, will assume operations. The new company will be staffed with experienced personnel from both companies. 

The assets consist of more than 200 miles of pipeline currently in service, which is expected to increase to about 375 miles of pipeline with projected throughput of over 800 million cubic feet per day by year-end 2010. Additionally, the system’s amine treating plants have a projected capacity of approximately 2,635 gallons per minute by year end.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs