Kinder Morgan Energy Partners LP plans to invest $170 million to expand its terminal network at the Houston Ship Channel, the company announced on Monday morning.
The Houston-based oil and gas pipeline company intends to buy 42 acres, where it will build a new ship dock for ocean-going vessels and 1.2 million barrels of liquids storage tanks.
The project is intended to ease congestion at Kinder Morgan’s existing Ship Channel terminals and provide for future export capacity, said Jeff Armstrong, president of Kinder Morgan Terminals.
The company also has entered into an agreement with an undisclosed ship channel refiner to develop six, 150,000-barrel tanks and four 75,000-barrel tanks linked to Kinder Morgan’s Galena Park Terminal. Armstrong said that the company is considering adding additional storage tanks to the project, but has not yet made a firm decision.
Kinder Morgan is the largest pipeline company in the United States, and owns about 46,000 miles of pipelines and 180 terminals.