To better serve our many subscribers that are working from home during this time, we are offering digital issues of North American Oil and Gas Pipelines. Please Subscribe to ensure delivery of future digital editions. Thank you and be well.

Kinder Morgan Closes Acquisition of Infrastructure From BP

0

kinder-morgan-logoKinder Morgan Inc. closed its previously announced plan to acquire 15 refined products terminals from BP Products North America Inc. in a transaction valued at approximately $350 million.

RELATED: Kinder Morgan, BP Form Joint Venture to Purchase U.S. Terminals

/*** Advertisement ***/

The terminals are key distribution facilities for major refined products consuming markets and have approximately 9.5 million barrels of storage and associated infrastructure in the United States. Kinder Morgan and BP Products North America have also formed a joint venture limited liability company terminal business to own 14 of the acquired assets, which Kinder Morgan will operate and market on the JV’s behalf. The 15th terminal will be owned and operated solely by KMI.

In connection with the transaction, BP has entered into commercial agreements securing long-term storage and throughput capacity from the JV, which will market additional capacity to third-party customers. Kinder Morgan owns a 75 percent interest in the JV, with BP owning the balance. This investment is included in Kinder Morgan’s 2016 capital plan as discussed in its Jan. 27 investor conference.

“We are pleased to close the transaction we announced last October and partner with BP on this exciting joint venture,” said John Schlosser, president of Kinder Morgan Terminals. “By combining BP’s expertise in product trading and marketing with Kinder Morgan’s strength in operations and terminal development, the JV is well suited to take advantage of growth opportunities in high-demand refined petroleum products markets.

RELATED: Kinder Morgan, TrailStone to Form Mexican Gas Company

“The new venture benefits BP, Kinder Morgan and our third-party customers, principally because the terminals are key distribution facilities for refined products markets, connected by pipeline to key refining and processing centers across the United States, and offer extensive truck, vessel and barge access, and terminal service capabilities.”

The terminals are located in the Midwest, Northeast, Southeast and on the West Coast at: Rochelle, O’Hare (100 percent Kinder Morgan), Chicago and Wood River in Illinois; Dayton and Cincinnati, Ohio; Brooklyn, New York; Carteret, New Jersey; Curtis Bay, Maryland; Port Everglades, Florida; Atlanta and Doraville, Georgia; Indianapolis, Indiana; Spring Valley, Minnesota; and Richmond, California.

RELATED: Kinder Morgan Seeks Approval for Northeast Energy Direct

The transaction includes approximately 160 former BP employees.

Share.

Comments are closed.

Copyright Benjamin Media 2018