Kinder Morgan and Southern Company announced Thursday the closing of their joint venture of the Southern Natural Gas (SNG) pipeline system, of which Southern Company will now acquire a 50 percent equity interest through its subsidiary Southern Company Gas.
Kinder Morgan will continue to operate the SNG system, and both groups will work together to develop gas infrastructure that is important to the future of the nation’s energy industry.
The 7,000-mile SNG pipeline system connects natural gas supply in Texas, Louisiana, Mississippi, and Alabama to markets in Louisiana, Mississippi, Alabama, Florida, Georgia, South Carolina, and Tennessee. It is the largest natural gas pipeline system to serve the Southeast.
Kinder Morgan will use the proceeds from this transaction to reduce debt.