Under the agreement, Kinder Morgan Energy Partners will sell its Kinder Morgan Interstate Gas Transmission (KMIGT), Trailblazer
Pipeline Company, Casper-Douglas natural gas processing and West Frenchie Draw treating facilities in Wyoming, and its 50% interest in the Rockies Express Pipeline (REX).
Kinder Morgan values the transaction at $3.3bn including the REX debt.
Tallgrass CEO David G Dehaemers Jr. said the acquisition will expand the asset base of the company.
"The conversion of the Pony Express Pipeline portion of KMIGT into oil service, the seamless transitioning of its gas customers, and placing it in service during the second half of 2014 will be a significant focus for near term growth," Dehaemers Jr., added.
"In addition, we will be exploring some promising growth projects on the east end of Rockies Express to maximize the potential of this state-of-the-art pipeline."
The acquisition is expected to be closed in the final quarter of 2012 following the approval of the Federal Trade Commission.
