Material permits have been secured and building work has started on Kinder Morgan Canada's Vancouver Wharves terminal distillate storage expansion project.
The C$43 million capital project in North Vancouver, British Columbia, comprises the construction of two new distillate tanks with a combined storage capacity of 200,000 barrels as well as enhancements to the railcar unloading capabilities.
It is supported by a 20-year initial term, take-or-pay contract with an affiliate of a large, international integrated energy company.
The project is expected to be placed in service in late first quarter of 2021.
In the company's second quarter financials, Kinder Morgan's terminal segment earning were up due to an impairment taken in the second quarter of 2018. Segment earnings before this were down.
Kinder Morgan president Kim Dang says: 'In the liquids business, which accounts for nearly 80% of the segment total, increased contributions from expansion projects placed in service and higher throughput and ancillary contributions were more than offset by reduced volumes as well as off-hire times on its Jones Act tankers caused by Mississippi River closures due to historically high water levels, along with tank lease costs at the Edmonton South Terminal, paid pursuant to a lease agreement with Trans Mountain that become a third-party arrangement due to our sale of Tans Mountain.'
CEO Steve Kean adds: 'These are exciting times for Kinder Morgan, with booming US natural gas and oil production projects to grow more than 30% through 2030. Our North American footprint positions us extremely well in both the near and long term as a leading infrastructure provider for those and other essential energy products.'
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