Kinder Morgan to purchase five terminals
Oct 1, 2003 12:00 PM
Kinder Morgan Energy Partners LP (KMP) has signed an agreement with Shell Oil Products US to purchase five refined petroleum products terminals in the western United States for $20 million. After the closing, KMP plans to invest another $8 million in the facilities. The terminals in Colton and Mission Valley CA, Phoenix and Tucson AZ, and Reno NV, have a combined 28 tanks with storage capacity of about 700,000 barrels for gasoline, diesel, and jet fuel.
“These terminals strengthen our ability to meet growing storage demand for refined petroleum products in the West and complement our existing assets,” said Richard D Kinder, chairman and chief executive officer of KMP. “As part of the transaction, Shell has entered into a long-term contract to store products in the terminals, providing KMP investors with an additional source of stable, fee-based income.”
These terminals provide automated truck-loading equipment and offer various blending services. The acquisition will enhance the company's Pacific operations, consisting of 3,850 miles of pipelines and more than 20 terminals. KMP's Pacific system delivers more than one million barrels of refined petroleum products each day in California and neighboring western states. Subject to certain closing conditions, the transaction is expected to be completed in fourth-quarter 2003.
© 2013 Penton Media Inc.
Acceptable Use Policy blog comments powered by Disqus