Kinder Morgan expanding storage site

Fuel Fix ^ | June 5, 2013 | Zain Shauk

[thackney]

Pipeline giant Kinder Morgan will push forward with a $54 million expansion to add to its sprawling, 57-tank storage site under construction along the Houston Ship Channel.

The move will add six large tanks to the complex, boosting its capacity by 900,000 barrels. In total, with the expansion, the complex will be able to store 8 million barrels across its 63 tanks, which will handle refined products like ultra low sulfur diesel and other products.

The expansion also will add access for pipelines and deep-water vessels.

Kinder Morgan owns a 55 percent stake in the complex, with TransMontaigne Partners holding the remainder of the joint venture, called the Battleground Oil Specialty Terminal Company, or BOSTCO.

The initial plan for the complex, which will be 185 acres, was set to cost $485 million.

Construction of the initial 57 tanks and other supporting facilities is set to be completed this year, which is when work on the expansion will begin, according to Kinder Morgan.

The expanded site is set to be up and running at the end of 2014.

Houston-based Kinder Morgan owns an interest in or operates 51,000 miles of pipelines and 180 terminals for petroleum products.

[thackney]

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) owns 55 percent of the Battleground Oil Specialty Terminal Company LLC (“BOSTCO”) project – TransMontaigne Partners LP owns the remaining 45 percent. BOSTCO owns approximately 185 acres of land and waterfront located at mile marker 43 on the Houston Ship Channel. Construction on the new terminal began on Dec. 14, 2011, and initial startup of operations is expected in the 3rd quarter of 2013. The first phase of the project currently includes construction of 52 storage tanks that will have a capacity of 6.5 million barrels for handling residual fuel, feedstocks, distillates and other black oils. The project will include deep draft docks enabling BOSTCO customers to utilize the largest ships capable of accessing the Houston Ship Channel. Terminal service agreements and/or letters of intent have been executed with customers for almost all of the capacity.

http://www.bostco.net/

https://maps.google.com/maps?q=bostco&hl=en&sll=29.737998,-95.101948&sspn=0.100761,0.198269&t=h&hq=bostco&z=13

[AlmaKing]

Why do you think KMP is taking a real hit in the market with positive news like this?

[thackney]

I have no idea. I learned long ago understanding the industry had nothing to do with understanding the market for the same industry.

Possibly it was being over-rated recently and now is coming back closer to reality? Or maybe Aliens?

They have a lot of things going on.

Kinder Morgan Cancels $2B California Oil Pipeline
http://www.freerepublic.com/focus/f-news/3026657/posts
May 31, 2013

Kinder Morgan Crude and Condensate pipeline system
http://www.freerepublic.com/focus/f-news/3027075/posts
June 3, 2013

Some folks like them for an investment.

http://www.insidermonkey.com/blog/kinder-morgan-energy-partners-lp-kmp-williams-partners-l-p-wpz-jim-cramer-invest-like-the-ridiculously-rich-in-high-yielding-stocks-160746/?singlepage=1

[Newbomb Turk]

My word. They maintain 51000 miles of pipeline ?

These evildowers must be stopped. /sarcasm.

Makes the proposed 1179 mile long Keystone XL pipeline look like a butt pimple. Everyone to your Prius. Stat !

[thackney]

They maintain 51000 miles of pipeline ?

Not all of that, some of those miles they only have a minority interest and another company operates and maintains. But no doubt they are one of the largest pipeline companies in the 500 or so hundred thousand miles of petroleum and gas pipelines in the US.

[Verginius Rufus]

I never heard of Kinder Morgan before.

Are they connected with George H. W. Bush's Kinder Gentler?

[thackney]

Kinder Morgan is the largest midstream and the third largest energy company (based on combined enterprise value) in North America. We own an interest in or operate approximately 80,000 miles of pipelines and 180 terminals.

* The largest natural gas pipeline and storage operator in the U.S.

* The largest independent transporter of refined petroleum products in the U.S.

* The largest independent terminal operator in the U.S.

* The largest transporter and marketer of CO2 in the U.S.

* The only oilsands pipeline serving the West Coast of Canada.

At Kinder Morgan, we pride ourselves on being a different kind of energy company. What makes us different? It starts at the top with Chairman and CEO Richard D. Kinder, who earns a salary of $1 per year and does not receive a bonus, stock options or restricted stock grants. We like to say that Kinder Morgan is a company run by shareholders for shareholders. Additionally, we eliminate unnecessary corporate overhead expenses such as corporate aircraft, sponsorships, sports tickets and executive perks. In addition, we cap senior executives’ base salaries below industry standards. Their financial incentives, such as bonuses, are tied directly to the performance of the company and their own personal performances.

Kinder Morgan has been conducting its business transparently long before it became a corporate buzz word. To our knowledge, we are the only S&P 500 company that publishes its annual budget on its web site, which enables investors and others to follow our progress throughout the year. We also post our environmental, health and safety (EHS) performance on our web site. KMP continues to outperform the industry averages in most safety and release related categories.

Kinder Morgan does not have a Political Action Committee (PAC), nor do we make any political contributions. Any political contributions made by executives or employees are made individually as private citizens with their own personal money.

Kinder Morgan has more than 11,000 employees and has a combined enterprise value of approximately $115 billion.