Southern Co. has bought a 50% stake in Kinder Morgan’s Southern Natural Gas pipeline for $1.5 billion, Reuters reports. It is the latest example of a major power generation company buying into natural gas transmission as the dominance of coal-fired power fades in the U.S. Southern last month received clearance to buy a gas distribution firm for $8 billion last month, Reuters notes.
For Kinder Morgan, the sale is the latest step to raise cash and pay down debt amid the energy market downturn. Kinder Morgan last month sold a 50% stake in an ethane pipeline project and it canceled a $3.1 billion New England gas pipeline project in April.
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