Kinder Morgan and BP Form Joint Venture Limited Liability Company to Purchase U.S. Terminals from BP
Combined Expertise Creates Synergies in Key Refined Products Markets
Kinder Morgan, Inc. (NYSE: KMI) today announced that the company has
finalized agreements with BP Products North America Inc. to acquire 15
refined products terminals and associated infrastructure in the United
States in a transaction valued at approximately $350 million. Kinder
Morgan and BP will form 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. One terminal will be owned
solely by KMI.
The terminals, with approximately 9.5 million barrels of storage, are
pipeline-connected to key refining and processing centers across the
United States and offer extensive truck, vessel, and barge access and
terminal service capabilities. In connection with the transaction, BP
will enter into commercial agreements securing long-term storage and
throughput capacity from the JV, which plans to market additional
capacity to third-party customers. The transaction is expected to close
in the first quarter of 2016.
“We are excited to be partnering with BP on this 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 for growth
opportunities in high-demand refined petroleum products markets. We
believe this arrangement benefits BP, Kinder Morgan and third-party
Kinder Morgan will own a 75 percent interest in the JV, with BP owning
the balance. The terminals are located in the Midwest, Northeast,
Southeast and on the West Coast.
Kinder Morgan, Inc. (NYSE: KMI) is the largest energy infrastructure
company in North America. It owns an interest in or operates
approximately 84,000 miles of pipelines and 165 terminals. The company’s
pipelines transport natural gas, gasoline, crude oil, CO2 and
other products, and its terminals store petroleum products and
chemicals, and handle bulk materials like coal and petroleum coke.
Kinder Morgan is the largest midstream and third largest energy company
in North America with an enterprise value of approximately $115 billion.
For more information please visit www.kindermorgan.com.
This news release includes forward-looking statements. These
forward-looking statements are subject to risks and uncertainties and
are based on the beliefs and assumptions of management, based on
information currently available to them. Although Kinder Morgan
believes that these forward-looking statements are based on reasonable
assumptions, it can give no assurance that such assumptions will
materialize. Important factors that could cause actual results to
differ materially from those in the forward-looking statements herein
include those enumerated in Kinder Morgan’s reports filed with the
Securities and Exchange Commission. Forward-looking statements
speak only as of the date they were made, and except to the extent
required by law, Kinder Morgan undertakes no obligation to update or
review any forward-looking statement because of new information, future
events or other factors. Because of these uncertainties, readers
should not place undue reliance on these forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151020005942/en/
Copyright Business Wire 2015
Source: Business Wire
(October 20, 2015 - 9:00 AM EDT)
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