Southern Company and Kinder Morgan finalize pipeline venture
Southern Company and Kinder Morgan, Inc., finalized a joint natural gas pipeline venture on Thursday that included Southern Company’s acquisition of a 50 percent equity interest in the Southern Natural Gas (SNG) pipeline, operated by Kinder Morgan.
“This strategic venture aligns with Southern Company’s previously discussed infrastructure development strategy and builds on Southern Company Gas’ midstream pipeline experience,” Southern Company Chairman, President and CEO Thomas A. Fanning said. “With our new ownership stake in Southern Natural Gas we look forward to working with Kinder Morgan to explore future opportunities to deliver natural gas to customers.”
Through the venture, Kinder Morgan will continue to operate the pipeline. Negotiations to expand the pipeline and develop new natural gas infrastructure are underway.
“The Southern Company system has been a valued customer of SNG for many years and this joint venture is expected to greatly benefit the shareholders of both companies,” Kinder Morgan South Region Pipelines President Norman G. Holmes said. “We are very pleased to begin pursuing the growth opportunities this strategic relationship should provide.”
The SNG pipeline is a 7,000-mile pipeline system that connects natural gas supply basins in Alabama, Louisiana, Mississippi and Texas. It also supplies natural gas to Alabama, Florida, Georgia, Louisiana, Mississippi, South Carolina and Tennessee.
All resulting proceeds from the agreement will be used to improve financial stability at Kinder Morgan.
