Kinder Morgan Energy Partners L.P.
) share price rose by 0.5% following the announcement that the
partnership and its 50-50 joint venture partner, Imperial Oil
Limited (IMO) had inked an additional firm take or pay agreement
with strong, credit worthy oil company majors.
The agreements are adequate to take forward a planned expansion
project by adding incremental capacity of 110,000 barrels per day
(bpd) at Edmonton Rail Terminal. The project cost is approximately
$232 million, including the addition of the expanded capacity.
The terminal, which has been under construction for almost a year
now, is expected to have a capacity of over 210,000 bpd at start-up
in the first quarter of 2015, which will likely move up to about
250,000 bpd eventually.
A pipeline will link the terminal to Kinder Morgan's adjacent
Edmonton storage terminal. Moreover, the terminal will be capable
of sourcing all crude streams managed by the partnership for
delivery by rail to North American markets and refineries. The rail
terminal under construction, to be operated by Kinder Morgan, will
connect to both Canadian National and Canadian Pacific mainlines.
The rail facility will be equipped with latest technology as well
as extensive safety and environmental protection features. It will
also employ trained personnel round the clock.
Kinder Morgan is the largest independent owner and operator of
petroleum product pipelines in the U.S. Its pipelines transport
natural gas, refined petroleum products, crude oil, carbon dioxide
and other products, while its terminals store petroleum products
and chemicals, and handle bulk materials such as coal and petroleum
coke. It owns or operates more than 28,000 miles of pipeline and
approximately 180 terminals.
Currently, Kinder Morgan carries a Zacks Rank #3 (Hold). However,
better-ranked stocks in the oil and gas industry that are expected
to perform well include Weatherford International plc (
), CNOOC Ltd (
) and Kosmos Energy Ltd. (
). All of these have a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
KINDER MORG ENG (KMP): Free Stock Analysis
KOSMOS ENERGY (KOS): Free Stock Analysis Report
CNOOC LTD ADR (CEO): Free Stock Analysis Report
WEATHERFORD INT (WFT): Free Stock Analysis
To read this article on Zacks.com click here.