Kinder Morgan Inc will purchase three terminals and one undeveloped site from Royal Vopak for approximately $158 million. The transaction, subject to customary approvals, is expected to close during the first quarter and will be immediately accretive to KMI earnings.
The acquisition covers a 36-acre, 1,069,500-barrel storage complex at Galena Park TX that handles base oils, biodiesel and crude oil, immediately adjacent to Kinder Morgan’s Galena Park terminal complex; two Vopak terminals in North Carolina, one in North Wilmington that handles chemicals and black oil, and one in South Wilmington that is not currently operating; and an undeveloped site at Perth Amboy NJ with waterfront access that can be developed.
“After closing, this transaction will further solidify Kinder Morgan’s position as the largest independent terminal operator in North America,” said John Schlosser, Kinder Morgan Terminals president. “This highly strategic acquisition will increase Kinder Morgan’s liquids storage capacity by more than 2.2 million barrels and 115 tanks while adding critical dock capacity on the Houston Ship Channel and in Wilmington.”
Exclusive of the planned acquisition, Kinder Morgan’s overall Houston Ship Channel presence will total over 400 storage tanks with 43 million barrels of capacity upon completion of existing expansion projects.