Jan 13 (Reuters) - Pipeline operator Kinder Morgan ( KMI )

said on Monday its unit Hiland Partners has agreed to

buy a natural gas gathering and processing system in North

Dakota from Outrigger Energy II LLC for $640 million.

The oil and gas pipeline sector has seen increased

consolidation in recent years as U.S. production grows, while

persistent problems related to permits for new pipelines have

made existing operators more valuable.

In 2023, Kinder Morgan ( KMI ) acquired NextEra Energy's gas

pipelines in South Texas for $1.82 billion.

Kinder Morgan's ( KMI ) North Dakota acquisition includes a 270

million cubic feet per day (mmcfd) processing facility and a

104-mile (167.37-km) gas gathering header pipeline with 350

mmcfd of capacity connecting supplies from the Williston Basin

area to high-demand markets.

The company said the deal, which is expected to close in the

first quarter of 2025, will be immediately accretive and reduce

future capital expenditure needed to accommodate the growth of

its existing customers in the Bakken oil-producing region.