Kinder Morgan Energy Partners LP will pay $155 million for SouthTex Treaters, which makes plants to treat natural gas, the pipeline owner said Monday.
The deal is expected to close in the fourth quarter and immediately begin adding to cash for distribution to shareholders.
SouthTex makes plants that remove carbon dioxide and hydrogen sulfide from natural gas. Kinder Morgan said treatment plants are often needed around shale formations, where gas production has been growing.
Kinder Morgan Partners owns pipelines and storage facilities for natural gas, gasoline, crude oil and other products. It also provides carbon dioxide for use in oil recovery. It usually doesn’t own the products that flow through its pipelines, which provides some insulation from volatile commodity prices.
Just over one week ago, Kinder Morgan announced plans to buy El Paso Corp. in a $20.7 billion, which would create the nation’s largest natural gas pipeline operator.