The new pipeline, which will initially transport 50,000 b/d of condensate for Petrohawk Energy Corporation, will consist of about 61 miles of new-build construction and 109 miles of existing natural gas pipeline that is being converted.   
Service to KMP’s natural gas customers in the Houston Ship Channel will not be affected by this optimization of the company’s Texas intrastate pipeline system.   
The pipeline will originate in Petrohawk’s Black Hawk Field near Cuero, Texas, and extend to the Houston Ship Channel where it will initially deliver condensate to multiple terminaling facilities with access to local refineries, petrochemical plants and docks. The new pipeline is expected to be in service in the second quarter of 2012.    
In addition to the pipeline project, Kinder Morgan has entered into a definitive agreement to pay about $855 million to Petrohawk and assume about $65 million in debt for Petrohawk’s 50% interest in KinderHawk Field Services (the natural gas gathering and treating services provider in the Haynesville Shale) and a 25% interest in Petrohawk’s natural gas gathering and treating business in the Eagle Ford Shale.   “As we detailed at our recent investor conference, we expect opportunities in the prolific natural gas shales to be a primary driver of future growth at KMP. In addition to our Natural Gas business segment, which will benefit from the acquisition, our Products Pipelines segment will realize growth from the construction and operation of the new pipeline that will transport condensate and crude oil,” said Chairman and CEO Richard D. Kinder.   Upon closing, which is expected in the third quarter this year, KMP will own 100% of KinderHawk, the largest natural gas gathering and midstream business in the Haynesville Shale of northwest Louisiana.   KinderHawk currently has more than 400 miles of pipeline with over 2 billion cubic feet (Bcf) per day of pipeline capacity and throughput of over 0.9 Bcf per day. Throughput is expected to reach 1.2 Bcf per day by year end.   
In the Eagle Ford Shale in south Texas, KMP and Petrohawk will form a joint venture (KMP will own 25% and Petrohawk 75%) that will own two midstream gathering systems in and around Petrohawk’s Hawkville and Black Hawk fields.