HOUSTON--(BUSINESS WIRE)--Kinder Morgan, Inc. (NYSE: KMI) today closed the previously announced plan to acquire 15 refined products terminals from BP Products North America Inc. in a transaction valued at approximately $350 million. The terminals are key distribution facilities for major refined products consuming markets and have approximately 9.5 million barrels of storage and associated infrastructure in the United States. Kinder Morgan and BP Products North America have also formed 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. The fifteenth terminal will be owned and operated solely by KMI. In connection with the transaction, BP has entered into commercial agreements securing long-term storage and throughput capacity from the JV, which will market additional capacity to third-party customers. Kinder Morgan owns a 75 percent interest in the JV, with BP owning the balance. This investment is included in Kinder Morgan’s 2016 capital plan as discussed in its Jan. 27 investor conference.
“We are pleased to close the transaction we announced last October and partner with BP on this exciting 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 to take advantage of growth opportunities in high-demand refined petroleum products markets.
“The new venture benefits BP, Kinder Morgan and our third-party customers, principally because the terminals are key distribution facilities for refined products markets, connected by pipeline to key refining and processing centers across the United States, and offer extensive truck, vessel and barge access, and terminal service capabilities.”
The terminals are located in the Midwest, Northeast, Southeast and on the West Coast at: Rochelle, O’Hare (100 percent Kinder Morgan), Chicago and Wood River in Illinois; Dayton and Cincinnati, Ohio; Brooklyn, New York; Carteret, New Jersey; Curtis Bay, Maryland; Port Everglades, Florida; Atlanta and Doraville, Georgia; Indianapolis, Indiana; Spring Valley, Minnesota; and Richmond, California.
The transaction includes approximately 160 former BP employees.
Kinder Morgan, Inc. (NYSE: KMI) is the largest energy infrastructure company in North America. It owns an interest in or operates approximately 84,000 miles of pipelines and approximately 180 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. For more information please visit www.kindermorgan.com.
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This news release includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities and Exchange Act of 1934. Generally the words “expects,” “believes,” anticipates,” “plans,” “will,” “shall,” “estimates,” and similar expressions identify forward-looking statements, which are generally not historical in nature. Forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although Kinder Morgan believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance that any such forward-looking statements will materialize. Important factors that could cause actual results to differ materially from those expressed in or implied from these forward-looking statements include the risks and uncertainties described in Kinder Morgan’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year-ended December 31, 2014 (under the headings “Risk Factors” and “Information Regarding Forward-Looking Statements” and elsewhere) and its subsequent reports, which are available through the SEC’s EDGAR system at www.sec.gov and on our website at ir.kindermorgan.com. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, Kinder Morgan undertakes no obligation to update any forward-looking statement because of new information, future events or other factors. Because of these risks and uncertainties, readers should not place undue reliance on these forward-looking statements.