24 January 2007 23:27 [Source: ICIS news]
TORONTO (ICIS news)--Kinder Morgan, a US energy and petrochemicals logistics company, said on Wednesday that it agreed to buy, for $50m (€39m), BP’s 50% stake in the Cochin natural gas liquids (NGL) and petrochemicals pipeline system.
Kinder Morgan already holds a 50% stake in the pipeline system.
It expects to close the transaction within the first quarter and will then also take over the operation of the line from BP, a ?xml:namespace>
BP announced last year it would upgrade the 1,900-mile line citing possible stress corrosion. It also suspended ethylene shipments on the line which transports NGLs and other petrochemical products from
Dow Chemical said in August last year it was shutting down all of its chemical manufacturing plants in Sarnia by end 2008 and cited lack of affordable feedstock due to the suspension of ethylene shipments on Cochin.
Asked about the status of the line and the cost of upgrading it, the spokeswoman said that Kinder took these factors into account in negotiating the transaction with BP.
($1 = €0.77)
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