From Bloomberg. Data points:
- Southern Natural Gas pipeline, built, owned, operated by KMI
- 7,600 mile pipeline
- connects natural gas supply basins in TX, LA, MS, AL, and GOM to markets in southestern US
- KMI will continue to operate
- Southern will own half
- Southern's share valued at almost $1.5 billion
With demand for electricity declining and natural gas taking market share from coal, Atlanta-based Southern was among the first utility owners to seek growth by buying a gas transporter.
Duke Energy Corp. and Dominion Resources Inc. followed suit.
Southern last month received regulatory clearance for its $8 billion takeover of natural-gas distributor AGL Resources Inc.I use a $1 million / mile to build pipeline from scratch.
7,600 / 2 = 3,800 = $3.8 billion. Southern got it for less than $1.5 billion.
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