Energy infrastructure company Kinder Morgan has finalised agreements to acquire 15 refined products terminals and associated infrastructure in the US from BP Products North America for $350m.
14 of the acquired assets would be owned by a new joint venture limited liability company (JV) formed by the companies.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Kinder Morgan will operate and market the assets on the JV’s behalf and will have sole ownership of one terminal.
With about 9.5 million barrels of storage, the terminals are pipeline-connected to key refining and processing centres across the US.
Located in the Midwest, Northeast, Southeast and on the West Coast, the terminals also offer truck, vessel, and barge access as well as terminal service capabilities.
In connection with the deal, BP will sign commercial agreements securing long-term storage and throughput capacity from the JV.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe JV, which plans to market additional capacity to third-party customers, will be 75% owned by Kinder Morgan and the remaining would be owned by BP.
The transaction is slated for completion in the first quarter of 2016.
Kinder Morgan Terminals president John Schlosser said: "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 customers."
Image: Kinder Morgan’s Pasadena Terminal. Photo: © Kinder Morgan
