Kinder Morgan to acquire 15 product terminals from BP, forms joint venture

Kinder Morgan, Inc., based in Houston, Texas, has finalized agreements with BP Products North America Inc. to acquire 15 refined products terminals and associated infrastructure in the United States in a transaction valued at approximately USD 350 million. The terminals are located in the Midwest, Northeast, Southeast and on the West Coast.

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 barrels of storage, are pipeline-connected to key refining and processing centers across the United States 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.

Kinder Morgan will own 75% of the JV and BP will own 25%. The transaction is expected to close in the first quarter of 2016.

“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,” said John Schlosser, president of Kinder Morgan Terminals.

Kinder Morgan, Inc. is the largest energy infrastructure company in North America. It owns an interest in or operates approximately 84,000 miles of pipelines and 165 terminals. The company’s pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals, and handle bulk materials like coal and petroleum coke. Kinder Morgan is the largest midstream and third largest energy company in North America, with an enterprise value of approximately USD 115 billion.