FTC Approves Kinder Morgan, Inc.'s Request to Modify Final Decision and Order, Divestiture Agreement Related to 2012 Acquisition of El Paso Corp
- Created on Thursday, 31 October 2013 11:02
- Written by IVN
Washington, DC - The Federal Trade Commission has approved a request by Kinder Morgan, Inc., that the Commission modify the final FTC order and approve a change to a related divestiture agreement. The order resolved Commission charges that Kinder Morgan’s 2012 acquisition of El Paso Corporation would harm competition in several markets for pipeline transportation and processing of natural gas in the Rocky Mountain region.
The final order required Kinder Morgan to divest its Rockies Express pipeline, Kinder Morgan Interstate Gas Transmission pipeline, and Trailblazer pipeline, as well as two gas processing plants in the Rocky Mountain region and associated storage capacity. Kinder Morgan also was required, among other things, to provide transitional support to the company purchasing the divested assets. Kinder Morgan divested the assets to Tallgrass Energy Partners, LP (Tallgrass) in 2012.
In its request, Kinder Morgan asked the FTC to modify the order and approve an extension of the Transition Services Agreement it has with Tallgrass, so Kinder Morgan can continue to support Tallgrass in operating acquired assets. Without this extension, which is from nine to 19 months, Tallgrass’s ability to compete in the marketplace would be diminished, the request states.