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Oct 1, 2006 12:00 PM

Kinder Morgan Energy Partners LP announced major expansions at its liquids terminals in Texas that will add infrastructure for more storage capacity along the Gulf Coast.

The investment of about $195 million will include the construction of new storage tanks at KMP's Pasadena and Galena Park terminals on the Houston Ship Channel, another cross-channel pipeline to increase connectivity between the two terminals, a new ship dock at Galena Park, and another bay at the company's Jefferson Street truck-rack facility.

These expansions are supported by long-term customer commitments and will result in 3.4 million barrels of additional tank storage capacity at the Pasadena and Galena Park terminals. Construction is underway, and all of the projects are expected to be completed by spring 2008.

One aspect of the expansion is an agreement KMP has with Green Earth Fuels to build six tanks at Galena Park solely for storing biodiesel. KMP will receive a fee for storing and transferring the alternative fuel.

The Galena Park and Pasadena terminals are the western Gulf Coast refining community's central interchange point. Currently the complex has almost 20 million barrels of storage capacity and is connected via pipeline to 14 refineries, four petrochemical plants, and 10 major outbound pipelines. The facility currently has four ship docks and seven barge docks for inbound and outbound movement of products.