Kinder Morgan to acquire Williston basin gas gathering, processing system

Hiland Partners Holdings LLC, a subsidiary of Kinder Morgan Inc., Houston, has agreed to purchase a natural gas gathering and processing system in North Dakota from Outrigger Energy II LLC for $640 million. 

The acquisition includes a 270 MMcfd processing plant and a 104-mile, large-diameter, high-pressure rich gas gathering header pipeline with 350 MMcfd of capacity connecting supplies from the Williston basin area of North Dakota to high-demand markets, the company said in a release Jan. 13. 

The gathering and processing system is backed by long-term contracts with commitments from major customers in the basin, the company continued. 

“We’re pleased to be integrating this complementary system with our existing Hiland gas assets to aggregate additional supplies from the Bakken,” said Tom Dender, KMI natural gas midstream president.