Kinder Morgan Closes Previously Announced Acquisition of 15 Terminals and Infrastructure from BP Products North America
Terminals are Key Distribution Facilities for Major Refined Products
Kinder Morgan, Inc. (NYSE: KMI) today closed the previously announced
plan to acquire 15 refined products terminals from BP Products North
America Inc. 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 barrels of storage
and associated infrastructure in the United States. Kinder Morgan and BP
Products North America 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 percent interest in the JV, with BP owning the
balance. This investment is included in Kinder Morgan’s 2016 capital
plan as discussed in its Jan. 27 investor conference.
“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
“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
The terminals are located in the Midwest, Northeast, Southeast and on
the West Coast at: Rochelle, O’Hare (100 percent 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.
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 approximately 180 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. For
more information please visit www.kindermorgan.com.
Important Information Relating to
This news release includes forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995 and
Section 21E of the Securities and Exchange Act of 1934. Generally the
words “expects,” “believes,” anticipates,” “plans,” “will,” “shall,”
“estimates,” and similar expressions identify forward-looking
statements, which are generally not historical in nature.
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 any such forward-looking
statements will materialize. Important factors that could cause actual
results to differ materially from those expressed in or implied from
these forward-looking statements include the risks and uncertainties
described in Kinder Morgan’s reports filed with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for the
year-ended December 31, 2014 (under the headings “Risk Factors” and
“Information Regarding Forward-Looking Statements” and elsewhere) and
its subsequent reports, which are available through the SEC’s EDGAR
system at www.sec.gov
and on our website at ir.kindermorgan.com. 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 any
forward-looking statement because of new information, future events or
other factors. Because of these risks and uncertainties, readers should
not place undue reliance on these forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160201005948/en/
Copyright Business Wire 2016