May 18, 2012 / 12:35 PM / 5 years ago

UPDATE 1-El Paso Pipeline buys assets worth $635 mln

May 18 (Reuters) - El Paso Pipeline Partners LP said it will acquire Cheyenne Plains Gas Pipeline Co LLC and the remaining interest in Colorado Interstate Gas LLC it does not already own from El Paso Corp for $635 million.

The transaction, which is expected to close along with Kinder Morgan Inc's acquisition of El Paso Corp, will immediately add to El Paso Pipeline's distributable cash flow, the company said in a statement.

Kinder Morgan struck a $21 billion deal to buy El Paso Corp last October, combining the two largest natural gas pipeline operators in North America. The deal is expected to close on May 24.

El Paso Pipeline Partners, which owns an 86 percent interest in Colorado Interstate Gas Co, will also assume $242 million of proportional debt as part of the deal.

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