Jan 14 Kinder Morgan Energy Partners on
Monday said it will invest $170 million to build a new shipping
dock and add refined fuel storage tanks in the Houston Ship
Channel, in step with increasing U.S. fuel exports.
The company made the announcement just days after the
expanded 400,000 barrels-per-day Seaway pipeline began pumping
crude oil to Houston, Texas, giving nearby refiners better
access to cheap U.S. crude and adding to their incentive to
export refined products.
Kinder Morgan said it has a letter-of-intent agreement with
a major refiner on the Houston Channel to build six tanks with
150,000-barrel capacity and four more with 75,000-barrel
capacity. The tanks will be connected to Kinder Morgan's Galena
Park terminal and the refinery and store gasoline and other
refined products, according to Joe Hollier, a spokesman with
Hollier declined to identify the refiner.
The new dock can handle ocean-going vessels and will serve
up to eight of the refinery's vessels and four Kinder Morgan
vessels every month.
"This project will alleviate existing dock congestion among
Kinder Morgan's Houston Ship Channel terminals (and) provide
additional export capacity value," Jeff Armstrong, president of
Kinder Morgan, said in a statement.
Kinder Morgan recently started a crude oil and condensates
pipeline that can transport 50,000 bpd of condensate from the
Eagle Ford shale play in south Texas to the Houston Ship