Kinder Morgan’s terminals business’ annual growth is expected to be less than its expected growth of 20% despite an increase of 6% in its third quarter financials.
Before DD&A and certain items, the business segment was $263 million, up 6% from the same period in 2014.
Around 215 of the growth in the third quarter 2015 was organic compared to the same period in 2014. The remainder came from acquisitions.
President and CEO Steve Kean says: ‘The increase in third quarter earnings was led by strong performance at our liquid terminals, driven by various expansions across our network including adding incremental storage capacity at our Edmonton South terminal, as well as contributions from new operations at our Geismar Methanol terminal, Deer Park Rail terminal and the Edmonton Rail Terminal, a 50-50 joint venture with Imperial Oil.
‘The Jones Act tanker and Vopak terminals acquisitions also contributed significantly to growth in this segment.’
As previously reported, Kinder Morgan has acquired 15 refined terminals and associated infrastructure from BP Products North America.
Additionally, the company has also commissioned a new crude-by-rail destination terminal at its Deer Park Rail Terminal on the Houston Ship Channel.
On October 17, the first of five tankers ordered by Kinder Morgan’s American Petroleum Tanker business were christened at General Dynamics’ NASSCO shipyard. Delivery is scheduled for November 2015.
Kinder Morgan continues to lead design and planning-permitting activities for the Base Line Terminal development, a new crude oil storage facility in Edmonton, Alberta.
Work also continues on various other projects including the KM Export Terminal along the Houston Ship Channel as well as two new ship docks on the channel capable of loading ocean going vessels at rates up to 15,000 barrels per hour.