Kinder Morgan Energy Now Holds 98% Interest In BOSTCO Project

Bought additional 50% WI in Battleground Oil Specialty Terminal Co. LLC project in Houston Ship Channel on the TX Gulf Coast, which plans to construct 52 storage tanks with capacity of 6.6 MMBO for handling residual fuel, feedstocks, distillates and other black oils.

Kinder Morgan Energy Partners LP, Houston, (NYSE: KMP) has acquired an additional 50% interest purchase Battleground Oil Specialty Terminal Co. LLC (BOSTCO) project in the Houston Ship Channel from TransMontaigne Partners LP, Denver, (NYSE: TLP) for an undisclosed price.

Kinder Morgan Energy Partners now owns 98% of BOSTCO and began construction Dec. 14, 2011, on the new, approximately $430-million oil terminal. The remaining 2% will be held by a customer at the BOSTCO facility. The first phase of the project currently includes construction of 52 storage tanks that will have a capacity of 6.6 million barrels for handling residual fuel, feedstocks, distillates and other black oils. Terminal service agreements and/or letters of intent have been executed with customers for almost all of the capacity.

“The project will include one of the deepest vessel drafts in the Houston Ship Channel and position Kinder Morgan extremely well for the growing trend of exporting petroleum related products overseas,” said Kinder Morgan Terminals President Jeff Armstrong.

BOSTCO is expected to be accretive to cash distributable to KMP unitholders when the first phase of the project comes online in the third quarter of 2013. The first phase of the project is expected to be completed by the first quarter of 2014.