Kinder Morgan purchased three terminals for $158 million, further solidifying its position as the largest energy infrastructure company in North America
Last week, Kinder Morgan (ticker: KMI) announced that it will purchase three storage terminals and one undeveloped site from Royal Vopak (ticker: VPK) for approximately $158 million. The acquisition covers a 36-acre, 1,069,500-barrel storage complex at Galen Park, Texas, that handles base oils, biodiesel and crude oil, immediately adjacent to Kinder Morgan’s Galena Park terminal complex; two Vopak terminals in North Carolina, one in North Wilmington that handles chemicals and black oil and one in South Wilmington that is not currently operating; and an undeveloped site at Perith Amboy, New Jersey, with waterfront access that can be developed, according to the KMI press release.
“This acquisition will increase Kinder Morgan’s liquids storage capacity by more than 2.2 million barrels and 115 tanks while adding critical dock capacity on the Houston Ship Channel and in Wilmington,” said John Schlosser, Kinder Morgan Terminals president.
Exclusive of the planned acquisition, KMI’s overall Houston Ship Channel presence will total over 400 storage tanks with 43 million barrels of capacity upon completion of existing expansion projects. The deal will boost the company’s storage capacity to over 45 million barrels on the Houston Ship Channel and 138 million barrels in North America.
The final closing date for the deal is expected in the first quarter of 2015.
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