Kinder Morgan has announced a $170 million improvement programme to increase efficiency, add product liquidity and enhance blending capabilities at its Pasadena and Galena Park terminals.
The company will invest $125 million on enhancements to its Pasadena Terminal and Jefferson Street Truck Rake, including:
– Increased flow rates on inbound pipeline connections and outbound dock lines, significantly reducing vessel load times and expanding effective dock capacity
– Tank modifications that will provide for butane blending and vapour combustion capabilities on 10 storage tanks, with the option to extend those capabilities to an additional 25 tanks or more
– Expansion of the current methyl tert-butyl ether storage and blending platform, including a dedicated cross-channel MTBE line serving vessels being loaded at Pasadena’s North Docks
– A new, dedicated natural gasoline inbound connection, enhancing customers’ blendstock supply optionality and liquidity
The improvements, which are expected to be completed by the end of the second quarter of 2020, are supported by a long-term agreement with a major refiner for two million barrels of refined petroleum products storage capacity at the terminal.
Additionally, the company will invest more than $45 million to develop and construct a butane-on-demand blending system for 25 tanks at its Galena Park Terminal. This will include construction of a 30,000-barrel butane sphere, a new inbound C4 pipeline connection, as well as tank and piping modifications to extend butane blending capabilities to 25 tanks, two ship docks and six-cross channel pipelines.
The project is supported by a long-term agreement with an investment grade midstream company and is expected to be completed in the fourth quarter of 2020.
John Schlosser, president of terminals for Kinder Morgan, says: ‘These projects speak to Kinder Morgan’s continued commitment to excellence and to improving our already best-in-class facilities along the Houston Ship Channel.
‘The announced improvements only serve to enhance our position as the market-leading refined petroleum products storage hub on the US Gulf Coast. This offers our customers unmatched supply optionality and liquidity and modal efficiencies as they aim to maximise storage and blending economics and access domestic and global energy markets in the most cost-effective manner possible.’