Kinder Morgan Energy Partners And Martin Midstream Partners LP Announces Rail Terminal Joint Venture In Permian Basin Of West Texas

Kinder Morgan Energy Partners And Martin Midstream Partners LP announced a new joint venture, Pecos Valley Producer Services LLC, to develop a multi-commodity rail terminal in Pecos, Texas. The new terminal will serve the growing oil and natural gas industries in the Permian Basin. The facility will be constructed and operated by a subsidiary of Watco Companies, Inc., the privately held short line railroad company in the United States. KMP holds a preferred equity position in Watco. The terminal will offer a variety of services to producers in the Permian Basin including crude oil hauling, storage, transloading and marketing. It will also provide producers access to light Louisiana sweet crude oil markets. Kinder Morgan and Martin Midstream Partners will offer immediate NGL storage, takeaway, and fractionation services, and seek to develop natural gas and crude gathering and processing systems within the area. Additionally, the joint venture has held initial discussions to develop a frac sand unit train terminal to service Reeves County and surrounding counties.