Kinder Morgan now owns 98% of BOSTCO, begins construction
Jan 11, 2012 11:11 AM
Kinder Morgan Energy Partners LP (KMP) announced the purchase of TransMontaigne Partners LP’s 50% interest in the previously announced Battleground Oil Specialty Terminal Company, LLC (BOSTCO) project. KMP now owns 98% of BOSTCO and began construction December 14, 2011, on the new, approximately $430 million oil terminal located on the Houston (TX) Ship Channel.
The remaining 2% will be held by a customer at the BOSTCO facility. The first phase of the project currently includes construction of 52 storage tanks that will have a capacity of 6.6 million barrels for handling residual fuel, feedstocks, distillates, and other black oils. Terminal service agreements and/or letters of intent have been executed with customers for almost all of the capacity.
“The project will include one of the deepest vessel drafts in the Houston Ship Channel and position Kinder Morgan extremely well for the growing trend of exporting petroleum related products overseas,” said Kinder Morgan Terminals President Jeff Armstrong.
BOSTCO is expected to be accretive to cash distributable to KMP unitholders when the first phase of the project comes online in the third quarter of 2013. The first phase of the project is expected to be completed by the first quarter of 2014.
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