05-06-2013

Kinder Morgan announces expansion of new BOSTCO oil terminal currently underconstruction

Kinder Morgan Energy Partners, L.P. today announced a 900,000-barrel expansion at the 185-acre Battleground Oil Specialty Terminal Company, LLC currently under construction on the Houston Ship Channel. The approximately $54 million expansion is supported by a long-term leased storage and handling services contract with Morgan Stanley Capital Group Inc. and includes six, 150,000-barrel, ultra low sulphur diesel tanks, additional pipeline and deepwater vessel dock access, and high-speed loading at a rate of 30,000 barrels per hour. Work on the 900,000-barrel expansion is scheduled to start in the second quarter of 2013, with commercial operations expected to begin in the fourth quarter of 2014.  

A joint venture of KMP (which owns a 55 percent interest in and will operate the facility) and TransMontaigne Partners L.P., the approximately $485 million BOSTCO oil terminal at mile marker 43 on the Houston Ship Channel is expected to begin commercial operations in the third quarter of 2013. With the completion of this expansion the terminal will be fully subscribed for the total capacity of 7.1 million barrels and will include the construction of 57 storage tanks to handle ultra low sulphur diesel, residual fuels and other black oil terminal services. BOSTCO is currently employing more than 700 local contractors and about 75 full-time employees will be needed to operate the facility once it is completed.  

Kinder Morgan Energy Partners, L.P. is a leading pipeline transportation and energy storage company and one of the largest publicly traded pipeline limited partnerships in America. It owns an interest in or operates approximately 51,000 miles of pipelines and 180 terminals. The general partner of KMP is owned by Kinder Morgan, Inc.