Boston, MA 10/15/2014 (wallstreetpr) – Kinder Morgan Inc (NYSE:KMI) announced that Kinder Morgan Energy Partners, L.P. has disclosed project expansion. The expansion would be in Pasadena and Galena Park terminals on the ship channel of Houston. The company expects that the expansion would offer further infrastructure to support growing demand for dock services and refined product storage across the ship channel of Houston.
Investment Cost
Kinder Morgan Inc (NYSE:KMI) stated that it had made a combined investment of about $240 million to include the development of 2.1 million barrels of storage between Pasadena and Galena Park terminals; its statement revealed.
Kinder Morgan said that it would also develop a new ship dock with a capacity to handle ocean going vessels. It would also improve its infrastructure facilities at its Galena Park terminal to lift the vessel load rates significantly through the current ship docks. It said that project was backed by long-term contracts by its current customers. Kinder Morgan Inc (NYSE:KMI) indicated that the current Galena Park ship docks and a new ship dock would be capable of loading vessels at rates of a maximum of 15,000 barrels an hour.
Management Speaks
Kinder Morgan Terminals’ President, John Schlosser, said that it would have nine ship docks across the ship channel of Houston. He said that Kinder Morgan Inc (NYSE:KMI) would double its load rates on its current docks. He added that he could see continuing robust demand for fuel transportation to the Coastline of Gulf to reach export markets.
Its new tankage would offer refined product traders and makers the facility to send more barrels through the water for global exports or to the pipelines of network for domestic consumption.
Tennessee Gas Pipeline
Separately, Kinder Morgan Energy Partners disclosed that its Tennessee Gas Pipeline Company was able to close successfully a binding open season for its 500,000 dekatherms a day of capacity South System Flexibility Project. Kinder Morgan Inc (NYSE:KMI) said that MexGas Supply has been granted 100% of the project capacity. It expected project capital of $187 million and hoped to start services from the next year.
