Kinder Morgan-El Paso Union Should Spur Pipeline Construction
The merger of two of the largest U.S. pipeline companies could create a heavyweight able to finance needed pipeline infrastructure, says Fadel Gheit, a senior oil-and-gas analyst with New York City-based Oppenheimer & Co.
“I think it will create long-term projects and make investments where [they are] needed,” Gheit says of the proposed merger between Kinder Morgan Inc. and El Paso Corp., announced on Oct. 16. Both firms are headquartered in Houston. “We don't have enough pipeline to take gas where it is used,” Gheit says, a situation that has existed in the pipeline sector for decades.