Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced KW Express LLC, a partnership between KMP and Watco Companies L.L.C., has entered into a long-term agreement with Mercuria Energy Trading Company Inc., to construct a 210,000 barrel per day (bpd) crude by rail project at the Greens Port Industrial Park on the Houston Ship Channel. The project will allow Mercuria Energy Trading, Inc. to source crude from various origination locations including Cushing, Okla., West Texas, the Bakken shale area and western Canada for delivery by rail into the Houston Ship Channel for distribution to various refiners via pipeline and barges. The facility will have the capability to unload and load up to three unit trains per day of crude oil and condensate as well as provide for up to 100,000 bpd of barge loading capacity. KW Express will own 85 percent of the project and, together with Watco, construct and operate the project once completed. Mercuria will own the remaining 15 percent interest of the project.
“This will be the first major crude by rail destination facility in the Houston area with the ability to deliver into the largest refining complex in the world,” said John Schlosser, Kinder Morgan Terminals president. “It will provide U.S. and Canadian producers much needed market access and optionality to deliver their crude oil production.”
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company and one of the largest publicly traded pipeline limited partnerships in America. It owns an interest in or operates approximately 46,000 miles of pipelines and 180 terminals. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Kinder Morgan is the largest midstream and the third largest energy company in North America with a combined enterprise value of approximately $100 billion. It owns an interest in or operates approximately 75,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO 2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMI owns the general partner interest of KMP and El Paso Pipeline Partners, L.P. (NYSE: EPB), along with limited partner interests in KMP, Kinder Morgan Management, LLC (NYSE: KMR) and EPB. 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.
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