Tallgrass Energy gains total control of major gas line in $1.3 billion deal

In a nearly $1.3 billion deal, Tallgrass Energy LP of Kansas City has acquired final ownership of the Phillips 66 Rockies Express Pipeline.

The sale involved the 25% interest still owned by Phillips 66. Tallgrass had been the majority owner of one of the line, considered one of the largest US natural pipelines.

The closing was expected Friday as Phillips explained it was part of the company’s effort to divest more than $3 billion in assets. The 25% share sold to Tallgrass represented a value of $1.275 billion.

Tallgrass was the operator of REX, a 1,714-mile pipeline system. The line provides more than 5 bvcd of natural gas transportation service between the Rockies, Appalachia and the northeastern part of the nation.