POST Online Media Lite Edition


Southern Company and Kinder Morgan finalize strategic gas pipeline

Staff Writer |
Southern Company and Kinder Morgan closed their natural gas pipeline venture through Southern Company’s acquisition of a 50% interest in the Southern Natural Gas (SNG) pipeline through a subsidiary of Southern Company Gas.

Article continues below

Kinder Morgan will continue to operate the system and the companies are pursuing specific growth opportunities to develop additional natural gas infrastructure for the strategic venture.

Southern Company, one of the nation’s largest natural gas consumers and distributors, and Kinder Morgan, a recognized leader in natural gas pipeline development and operations, will work together to advance both companies’ efforts to develop infrastructure important to America’s energy future.

SNG is an approximately 7,000-mile pipeline system connecting natural gas supply basins in Texas, Louisiana, Mississippi and Alabama to markets in Louisiana, Mississippi, Alabama, Florida, Georgia, South Carolina and Tennessee.

SNG is a principal transporter of natural gas to Alabama, Georgia and South Carolina, which are part of one of the fastest-growing natural gas demand regions in the United States.

As previously disclosed, Kinder Morgan plans to use all of the proceeds from this transaction to reduce debt.

What to read next

Targa Resources and Kinder Morgan team up to build Gulf Coast pipeline
Southern to buy 50% stake in Kinder Morgan natural-gas pipeline in $4.15bn deal
BP and Kinder Morgan will form joint venture