Kinder Morgan's terminal segment earnings recorded a 3% increase thanks to storage capacity growth at key hubs.
Contributions from its liquids business, which accounts for 80% of the segment total, we up 3% compared to the second quarter of 2017 driven by storage capacity increases in key hubs along the Houston Ship Channel and Edmonton, Alberta, as well as the full-period impact of the new-build Jones Act tankers delivered in 2017.
Kinder Morgan president Kim Dang says: 'These contributions were partially offset by the impact of certain divestitures, lower charter rates on existing Jones Act tankers, and lower tank utilisation at our Staten Island, New York location.'
At the company's Base Line Terminal in Alberta, construction of all major facilities is materially complete. The first six tanks at the 12-tank, 4.8-million-barrel facility, were placed into service in the first quarter of 2018. Four of the remaining tanks are expected to be placed into service in the third quarter of 2018 with the final two tanks in service in the fourth quarter. The project is expected to be delivered under budget, owing to project management efficiencies and cost savings.
In May, Kinder Morgan and a large, international integrated energy company entered into a binding Terminal Services Agreement to construct two new distillate tanks with a combined capacity of 200,000 barrels and enhance the railcar unloading capabilities at Kinder Morgan's Vancouver Wharves terminal in North Vancouver. Permitting efforts are underway, and the project is expected to be placed in service in mid-2020.
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