Kinder Morgan Energy Partners, L.P.
) is likely to add 900,000 barrels of storage to its $485 million
Battleground Oil Specialty Terminal Company LLC (BOSTCO) project
on the Houston Ship Channel, which is under construction. This is
a joint venture between Kinder Morgan and
TransMontaigne Partners L.P.
), with the former as the operator with 55% share.
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The expansion of BOSTCO includes six 150,000-barrel
ultra-low-sulphur diesel tanks, new pipeline and deepwater vessel
dock access and a faster loading rate. The expansion will be
supported by a long-term contract with Morgan Stanley Capital
Group Inc and is estimated to cost $54 million.
While this expansion to the 185-acre BOSTCO is expected to
commence in the second quarter of the current year, it is
scheduled for commissioning in the fourth quarter of 2014. The
facility is slated for a third quarter 2013 start-up.
Upon completion, the terminal will have a 7.1 million barrel
capacity, which is expected to be fully subscribed. The terminal
will comprise 57 storage tanks to manage diesel, residual fuel
and black oil, with further capacity to boost storage by 3
million barrels. Currently, BOSTCO has employed over 700 local
contractors and another 75 full-time employees will be required
to manage the facility on its completion.
The general partner of the partnership is owned by
Kinder Morgan, Inc.
) - the largest midstream and the third largest energy company in
North America. It has a combined enterprise value of around $115
billion and owns interest or manages about 80,000 miles of
pipelines and 180 terminals.
Kinder Morgan carries a Zacks Rank #3 (Hold). However, Zacks
Ranked #1 (Strong Buy)
) appears more attractive as it is expected to outperform over
the next few months.