Kinder Morgan announces expansion of BOSTCO terminal project
HOUSTON, June 5
HOUSTON, June 5 (Reuters) - Kinder Morgan Energy Partners will expand a $485 million diesel, residual fuel and black oil terminal project under construction on the Houston Ship Channel by 900,000 barrels, the company said on Wednesday.
The expansion of the joint-venture Battleground Oil Specialty Terminal Company LLC (BOSTCO) project will add six 150,000-barrel ultra-low-sulfur diesel tanks, more pipeline and deepwater vessel dock access and a faster loading rate. The expansion is supported by a long-term contract with Morgan Stanley Capital Group Inc.
In the joint venture with TransMontaigne Partners LP , Kinder Morgan operates and owns a 55 percent interest in the facility.
The initial phase of the BOSTCO terminal is slated to start up in the third quarter this year, with the expansion to start up in the fourth quarter of 2014. With the expansion, the project's capacity will be 7.1 million barrels in 57 storage tanks.
Charles Dunlap, chief executive officer of TransMontaigne, last month told analysts that the project can add another 3 million barrels of storage.