KMP purchases 7 Texas terminals
Apr 14, 2005 1:11 PM
Kinder Morgan Energy Partners (KMP) LP, Houston TX, has purchased seven bulk terminal operations from Trans-Global Solutions (TGS) Inc for approximately $245 million.
The Texas terminals will handled petroleum coke, a carbonaceous solid residual by-product of the oil refining coking process that is used primarily in the cement and power generation industries, according to KMP information.
"As we discussed at our annual investor conference in January, we believe that US refineries will process more heavy crude in the future, generating more petroleum coke," Richard D Kinder, KMP president and chief executive officer, said. "This should enable KMP to capture additional petcoke related opportunities."
The TGS facilities also provide handling and storage services for a variety of other bulk materials.
They are located in Texas, including facilities at the Port of Houston, the Port of Beaumont, and the TGS Deepwater Terminal located on the Houston Ship Channel.
In 2005, TGS projects its terminals will handle about 10-million tons of the product, and KMP expects to handle about seven-million tons at its existing facilities.
Combined, KMP will handle approximately 33 percent of the domestic market.
© 2013 Penton Media Inc.