Kinder Morgan to Buy Enron's Share of Trailblazer 
Kinder Morgan Energy Partners L.P. announced Wednesday it has signed a definitive agreement with Enron Trailblazer Pipeline Co. to acquire its 33.3% share for $68 million cash. This will give KMP 100% ownership in the 436-mile line out of the Rockies into the Midwest. 
Kinder Morgan is the operator of the pipeline that runs from Rockport (Weld County), CO, to Beatrice (Gage County), NE. 
"We are delighted to increase our ownership in Trailblazer, which generates reliable cash flow and is expected to experience significant growth in 2002 once our current expansion project is completed," said Richard D. Kinder, chairman of KMP. "Upon closing, the transaction is expected to be immediately accretive to KMP unitholders." 
"We have been interested in increasing our ownership of the pipeline since we bought our initial interest in 1999," Kinder said, adding the company has been negotiating with Enron for several months. The transaction, which is expected to close in the first quarter of 2002, is subject to standard closing conditions, as well as approvals by the court overseeing the Enron bankruptcy and by the Enron board of directors. 
As previously announced, Trailblazer is currently expanding its transportation capacity to 846,000 Dth/d from 522,000 Dth/d. The additional 324,000 Dth/d of capacity, which is scheduled to come on-line in mid-2002, has already been fully subscribed in the form of long term, firm transportation contracts. 
"We began the $58 million expansion project in August of this year, as significant growth in Rocky Mountain natural gas supplies had created the need for additional pipeline transportation infrastructure," Kinder explained. The expansion project includes installing two new compressor stations and adding additional horsepower at an existing compressor station. 
Through capital contributions, CIG Trailblazer Gas Co. -- an affiliate of El Paso Corp. -- is expected to become a 7-8% equity owner in Trailblazer in mid-2002 when the additional capacity comes on-line.