Kinder Morgan Invests In Haynesville And Eagle Ford Shale

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Kinder Morgan Energy Partners will pay $855 million to Petrohawk Energy Corp. and assume $65 million in debt for Petrohawk’s 50% interest in KinderHawk Field Services (natural gas gathering and treating services provider in the Haynesville Shale) and a 25% interest in Petrohawk’s gas gathering and treating business in the Eagle Ford Shale. KMP will invest $220 million to build a new crude/condensate pipeline with a capacity of 300,000 bpd that will initially transport 50,000 bpd of condensate for Petrohawk from its production area in the Eagle Ford to the Houston Ship Channel.
  KMP’s crude/condensate pipeline will consist of 61 miles of construction and 109 miles of existing natural gas pipeline that is being converted. The pipeline will originate in Petrohawk’s Black Hawk Field near Cuero, TX and extend to the Houston Ship Channel where it will initially deliver condensate to multiple terminals with access to local refineries, petrochemical plants and docks. The pipeline is expected to be in service shortly.