Kinder Morgan to acquire 15 refined product terminals in US from BP

Kinder Morgan has finalized agreements with BP to acquire 15 refined-products terminals and associated infrastructure in the US in a transaction valued at approximately $350 million, officials announced on Tuesday.

Kinder Morgan and BP will form a joint venture limited liability company (JV) terminal business to own 14 of the acquired assets, which Kinder Morgan will operate and market on the JV’s behalf. One terminal will be owned solely by Kinder Morgan.

The terminals, with approximately 9.5 million bbl of storage, are pipeline-connected to key refining and processing centers across the US and offer extensive truck, vessel, and barge access and terminal service capabilities. 

In connection with the transaction, BP will enter into commercial agreements securing long-term storage and throughput capacity from the JV, which plans to market additional capacity to third-party customers. The transaction is expected to close in the first quarter of 2016.

“We are excited to be partnering with BP on this joint venture,” said John Schlosser, president of Kinder Morgan Terminals. “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.”

Kinder Morgan will own a 75% interest in the JV, with BP owning the balance. The terminals are located in the Midwest, Northeast, Southeast and on the West Coast.