KMP in joint venture with TransMontaigne Partners announced its participation in Battleground Oil Specialty Terminal Company (BOSTCO).
Phase one of the project includes construction of 52 storage tanks that will have a capacity of 6.6 million barrels for handling residual fuel and other black oils.
Kinder Morgan Terminals president Jeff Armstrong said this facility will enable us to provide new services to our customers and future phases will tie this deep water terminal to other Kinder Morgan assets in the Houston market.
Investment in BOSTCO is expected to be accretive to cash distributable to KMP unit holders when the first phase of the project comes online by the third quarter of 2013, added Armstrong.
Construction of the tanks is expected to commence this year, upon completion of binding definitive customer agreements.
BOSTCO has received a required Texas Commission on Environmental Quality air permit and necessary Port of Houston permits, and anticipates receiving the remaining permit by the end of November.
