Kinder Morgan Energy Partners LP (NYSE: KMP) and Martin Midstream Partners LP (NASDAQ: MMLP) announced a joint venture, Pecos Valley Producer Services LLC, to develop a multicommodity rail terminal in Pecos, Texas. The facility will be constructed and operated by a subsidiary of Watco Companies Inc., the largest privately held short-line railroad company in the U.S. KMP holds a preferred equity position in Watco.
The terminal will offer a variety of services to producers in the Permian Basin, including crude oil hauling, storage, transloading and marketing. It will also provide producers access to light Louisiana sweet crude oil markets. Kinder Morgan and Martin Midstream Partners will offer immediate NGL storage, take-away, and fractionation services, and seek to develop natural gas and crude gathering and processing systems within the area.
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