Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced commercial operations are underway for phase one at the 185-acre Battleground Oil Specialty Terminal Company, LLC (BOSTCO) project on the Houston Ship Channel. Approximately 20 of the 51 storage tanks built during phase one construction are being placed into service this month, and the remaining tanks will come online during the next six months. A two-berth ship dock and 12 barge berths are also scheduled to be in service this month. A joint venture of KMP (which owns a 55 percent interest in and will operate the facility) and TransMontaigne Partners L.P. (NYSE: TLP), the almost $500 million BOSTCO terminal is fully subscribed for a total capacity of 7.1 million barrels (including the project's phase two expansion) and is able to handle ultra low sulfur diesel, residual fuels and other black oil terminal services.
Phase two of construction at BOSTCO is underway and involves the construction of an additional six, 150,000-barrel, ultra low sulfur diesel tanks, additional pipeline connectivity and high-speed loading at a rate of 25,000 barrels per hour. BOSTCO expects phase two to begin service in the fourth quarter of 2014.
“We are pleased commercial operations have begun which provide the market with a unique, deepwater terminaling solution that provides high-speed loading and improved barge and ship access to the Texas Gulf Coast for the export and import of various refined products,” said John Schlosser, president of Kinder Morgan Terminals.
The BOSTCO project is employing approximately 750 local contractors during construction and has hired about 75 full-time employees to operate the facility.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 51,000 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 $110 billion. It owns an interest in or operates approximately 80,000 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 interests 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. Although Kinder Morgan believes that its expectations 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 are enumerated in Kinder Morgan’s Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.
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