Kinder Morgan formally acquires US product terminals from BP
Kinder Morgan has closed on the previously-announced plan to acquire 15 refined products terminals from BP Products North America in a transaction valued at approximately $350 million.
The terminals are key distribution facilities for major refined products consuming markets and have approximately 9.5 million bbl of storage and associated infrastructure in the US.
Kinder Morgan and BP have also formed a joint venture limited liability company (JV) terminal business to own 14 of the acquired assets, which Kinder Morgan will operate and market on the JV’s behalf. The fifteenth 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% interest in the JV, with BP owning the balance. This investment is included in Kinder Morgan’s 2016 capital plan.
“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.
“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," he added.
The terminals are located in the Midwest, Northeast, Southeast and on the West Coast at: Rochelle, O’Hare (100% 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.
The transaction includes approximately 160 former BP employees.
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