Kinder Morgan Energy Partners LP announced a Houston TX-area expansion project and acquisition that will provide additional infrastructure to help meet growing demand for liquids storage and dock services along the Gulf Coast. The combined investment of approximately $170 million will include the purchase of 42 acres, construction of a new ship dock to handle ocean going vessels and building 1.2 million barrels of liquids storage tanks.
KMP has entered into a letter of intent (LOI) with a major ship channel refiner to develop six 150,000-barrel tanks and four 75,000-barrel tanks with connectivity to its Galena Park (TX) Terminal and to the refiner’s location. The property will be used to provide dock services for up to eight vessels a month for the refinery and four vessels a month for KMP’s terminal.
“This project will alleviate existing dock congestion among Kinder Morgan’s Houston Ship Channel terminals, provide additional export capacity value, and be accretive to KMP unitholders upon completion,” says Jeff Armstrong, president of Kinder Morgan Terminals.
Armstrong added that it will also be possible to add a second phase of storage tanks to the project in the future.