Kinder Morgan Energy Partners LP announced April 2 that it will invest approximately $58 million to expand its chemical storage capacity. The expansion is coming through new construction and acquisition.
KMP has entered into a long-term contract with Methanex Corporation to support the construction of methanol storage capacity near Kinder Morgan’s Geismar Liquids Terminal (GLT) in Geismar LA. Kinder Morgan will build, own and operate the storage tanks and related infrastructure, including improvements to its existing dock at GLT. The assets will provide critical marine, rail, and truck access in support of a one million tonne per year methanol production plant being relocated by Methanex from Chile, South America. The terminal infrastructure is expected to be in service during the second half of 2014, coinciding with the anticipated startup of the relocated plant.
KMP also has acquired Quality Carriers Inc’s 26-acre terminal located in Chester SC. The 19-tank facility currently provides storage for a single customer of 35,000 barrels and receives product by rail and distributes by truck.
“The abundance of attractively priced domestic natural gas has led to a resurgence in the chemical and manufacturing industries,” said John Schlosser, president of Kinder Morgan Terminals. ♦