Company News and Regulatory Filings
January 12, 2016
Kinetica Partners LLC acquires TransCanada’s TC Offshore LLC assets
Houston, TX, and Calgary, AB – Kinetica Partners LLC (“Kinetica”) and TransCanada Corporation (NYSE: TRP) (“TransCanada”) announced today that they have entered into a Purchase and Sale Agreement to sell TransCanada’s TC Offshore LLC assets to Kinetica. The sale includes 535 miles (860 kilometers) of natural gas gathering and transmission pipeline, seven offshore platforms and other facilities.
Terms of the deal were not disclosed.
“Kinetica is excited about the prospect of further enhancing our ability to serve natural gas and condensate producers and operators in the Gulf of Mexico,” said Diane Sweeney Dundee, President and Chief Operating Officer for Kinetica Partners. “The connections and additional geographic reach provided by TC Offshore LLC’s assets will provide Kinetica’s customers with options for bringing their production onshore and accessing the interstate natural gas transmission grid. This transaction is instrumental to Kinetica’s goal of reaching into the Deepwater Gulf of Mexico and marketing our services to producers and operators in those areas.”
The sale is expected to become final in the first quarter of 2016.
About Kinetica Partners LLC
The Kinetica partnership was formed in January 2010 to acquire assets in the midstream portion of the gas value chain. Kinetica owns and operates more than 1,600 miles of gathering and transmission pipelines serving producers in and near the Gulf of Mexico. Kinetica is a solution driven small company implementing our mission of attracting supply while maintaining our high standards of safety, service, simplicity and stability. The company also owns and operates three separation and dehydration plants and one separation plant in Louisiana. The company employees total over 1000 years of experience, and culminates vast experience in pipeline, marketing and associated disciplines in the natural gas arena.The entire leadership team focuses its daily efforts on pursuing excellence for its customers in attaching gas and condensate supply to its systems, with focus of safely maintaining its pipelines (which earned Kinetica the Gulf Guardian Award in 2015), simplifying contractual transactions, and providing the best possible service to our customers.More information is available at www.kineticallc.com.
About TransCanada Corporation
With more than 60 years’ experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and oil pipelines, power generation and gas storage facilities. TransCanada operates a network of natural gas pipelines that extends more than 68,000 kilometres (42,100 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent’s largest providers of gas storage and related services with more than 368 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns or has interests in over 10,900 megawatts of power generation in Canada and the United States. TransCanada is developing one of North America’s largest oil delivery systems. TransCanada’s common shares trade on the Toronto and New York stock exchanges under the symbol TRP. For more information visit: www.transcanada.com or check us out on Twitter @TransCanada or http://blog.transcanada.com.
Portions of this document constitute forward-looking statements as defined by federal law. Although management of Magellan Midstream Partners, L.P. and TransCanada Corporation believe any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Among the key risk factors that may have a direct impact on the decision to proceed with the opportunity described in this news release are: (1) the ability to obtain all required rights-of-way, permits and regulatory or other approvals on a timely basis; (2) price fluctuations and overall demand for crude oil; (3) changes in tariff rates or other terms imposed by state or federal regulatory agencies; (4) the occurrence of an operational hazard or unforeseen interruption; and (5) willingness to incur or failure of customers or vendors to meet or continue contractual obligations. Additional information about issues that could lead to material changes in performance is contained in filings with the Securities and Exchange Commission for both companies. The companies undertake no obligation to revise these forward-looking statements to reflect events or circumstances occurring after today’s date.
Kinetica: Diane Dundee (713)228-3347
President and COO
TransCanada: David Moneta / Stuart Kampel, Investor Relations (403) 920-7911 or (800) 361-6522
Mark Cooper, Media Relations (403) 920-7859 or (800) 608-7859
Tennessee Gas Pipeline and Kinetica Partners Amend Agreement to Sell Production Area Facilities
Kinetica Partners LLC (“KPLLC”) and Tennessee Gas Pipeline Company, L.L.C. (“TGP”) have entered into an amended agreement for the purchase and sale of facilities in the natural gas production areas of Louisiana and the Gulf of Mexico. The amendment provides the terms and conditions under which TGP would sell certain facilities it now owns and operates in the production area to KPLLC and builds on the purchase and sale agreement dated October 2010 and the facilities previously proposed to the Federal Energy Regulatory Commission (“FERC”) for abandonment by sale. In addition to the facilities that were approved by FERC for abandonment as gathering facilities, the amended agreement includes the facilities previously proposed for sale and found to be jurisdictional, as well as additional facilities that KPLLC will acquire as jurisdictional facilities. The amended agreement is subject to several conditions precedent, including management consents and regulatory approvals, and both TGP and KPLLC are preparing applications for FERC authorization to be filed this summer. The transaction aligns with KPLLC’s focus on serving producers in and near the Gulf of Mexico and TGP’s focus on aligning its facilities to support emerging onshore supplies near its existing pipeline system. TGP and KPLLC will be discussing the proposed sale with customers and regulators over the coming weeks.
- December 10, 2010 – Declaratory Order Filed
- November 03, 2011 – FERC Order Filed
- July 2012 – 7c Filing with FERC
- July 29, 2013 – Compliance Filing & Tariff
- August 28, 2013 – FERC reply to Compliance Filing