Kinder Morgan Energy Partners acquires, expands terminals
Sep 1, 2005 12:00 PM
Kinder Morgan Energy Partners LP announced two separate terminal acquisitions totaling $48 million, including capital to enhance operational efficiency, and another $48 million investment for two major terminal expansion projects.
In New York Harbor, KMP acquired a refined petroleum products terminal from ExxonMobil. This terminal on Staten Island will complement existing KMP facilities in Carteret and Perth Amboy NJ and significantly increase the company's liquids storage capacity on the East Coast. The facility currently has storage capacity of 2.3 million barrels for gasoline, diesel, and fuel oil, and KMP expects to bring several idle tanks back into service that would add another 550,000 barrels of capacity. In addition, the company will be rebuilding a berth with the ability to accommodate tanker vessels. As part of the transaction, ExxonMobil entered into a long-term storage capacity agreement with KMP and will continue to use a portion of the terminal.
KMP acquired a Hawsville KY dry bulk terminal from Southern Shores Terminal that primarily handles wood chips and finished paper products. The facility is along the Ohio River. As part of the transaction, KMP executed a long-term handling agreement with Weyerhauser. Additionally, the company plans to expand the terminal to increase utilization and provide storage services for more products.
On the Houston Ship Channel, KMP will construct 600,000 barrels of new storage capacity for gasoline and distillate at its Pasadena liquids terminal that is being supported by long-term contracts. Over the past four years, KMP has added more than 2.6 million barrels of capacity at its Pasadena and Galena Park facilities.
In Charleston SC, the company will undertake improvements at its Shipyard River terminal that are expected to increase throughput by more than 30%. KMP has executed a long-term contract with a third party to support the economics of the expansion. The terminal currently handles about 3.5 million tons of bulk products annually, mainly coal, petroleum coke, and cement. The expansion will enhance KMP's ability to handle the increasing supplies of imported coal used to meet the growing demand for electricity in the Southeast.
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