Under the terms of the deal, Kinder Morgan and BP will form a joint venture limited liability company (JV) terminal business, which will own 14 of the acquired assets.
Kinder Morgan will operate the 14 assets and market on the JV’s behalf. The other terminal will be owned solely by KMI.
With approximately 9.5 million barrels of storage capacity, the terminals are pipeline-connected to key refining and processing centers across the US.
The terminals, which are located in the Midwest, Northeast, Southeast and on the West Coast, also offer extensive truck, vessel, and barge access and terminal service capabilities.
Additionally, BP signed commercial agreements for securing long-term storage and throughput capacity from the JV, which will be 75% owned by Kinder Morgan. BP will own the remaining stake in the JV.
The additional capacity will be sold by JV to third-party customers.
The transaction is scheduled to be completed in the first quarter of 2016.
Kinder Morgan Terminals president John Schlosser said: "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."
Earlier this year, Kinder Morgan acquired pipeline and logistics company Hiland Partners (Hiland) from its founder, Harold Hamm, for approximately $3bn.
Image: The new JV between BP and Kinder Morgan will market additional capacity to third-party customers. Photo: courtesy of khunaspix/ FreeDigitalPhotos.net.
