June 13, 2011 at 1:13 pm #2236
June 13, 2011 09:00 AM Eastern Daylight Time
Kinder Morgan Grows Petcoke Terminal Network with Port Arthur Acquisition
HOUSTON–(BUSINESS WIRE)–Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced that it has acquired a newly constructed petroleum coke (petcoke) terminal in Port Arthur, Texas, for approximately $67 million from TGS Development Group. KMP will operate the facility, which handles petcoke from Total Petrochemicals USA, Inc.’s recently expanded Port Arthur refinery, and provide conveying, storage and ship loading services to Total pursuant to a 25-year contract. The refinery is expected to produce more than 1 million tons of petcoke annually. The transaction, which was developed in partnership with TGS and Total, is expected to be immediately accretive to cash distributable to KMP unitholders.
“We are pleased to expand our large petcoke handling network and look forward to providing superior service to Total through this long-term contract”[/blockquote]
“We are pleased to expand our large petcoke handling network and look forward to providing superior service to Total through this long-term contract,” said Jeff Armstrong, president of Kinder Morgan’s Terminals segment. Kinder Morgan is the largest handler of petcoke in North America and expects to handle more than 13 million tons in 2011.
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates more than 28,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of over $33 billion. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Combined, KMI and KMP have an enterprise value of approximately $55 billion.
Kinder Morgan Energy Partners, L.P.
Larry Pierce, 713-369-9407
Mindy Mills, 713-369-9490
Investor Relations http://www.kindermorgan.com
June 13, 2011 at 1:15 pm #5043
FYI – Looks like KM will get Total Petcoke handling contract.
I thought they already owned most of TGS terminals – course this mentions it is a “new” TGS terminal?
Also the petcoke handling estimates for 2011 looks to be way down – I thought they were at 18 MM mtpy before the Total deal, perhaps they arent counting tonnes that go thru Shell Deer Park to power plant or other JV petcoke terminals and only mention exports?
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