Kinder Morgan buys out partner in Houston Ship Channel project

Kinder Morgan has bought out its partner in a $430 million Houston Ship Channel terminal project, the company has announced.

TransMontaigne Partners held 50 percent interest in the Battleground Oil Specialty Terminal Company, or BOSTCO, joint venture, which is slated to build 52 oil storage tanks with a total capacity of 6.6 million barrels on the Houston Ship Channel.

Kinder Morgan Energy Partners now owns 98 percent of the project, with an unnamed BOSTCO customer controlling the remaining 2 percent.

Construction began Dec. 14 on the terminal, which will handle low-grade petroleum products and residual fuel used by ship engines and industrial plants. It will begin limited operation in the third quarter of 2013. The terminal is scheduled to be fully operational in early 2014.

“The project will include one of the deepest vessel drafts in the Houston Ship Channel and position Kinder Morgan extremely well for the growing trend of exporting petroleum related products overseas,” said Kinder Morgan Terminals President Jeff Armstrong in a written statement.

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