Construction work has started on a series of storage expansion & infrastructure projects at several Kinder Morgan facilities.
Announcing its fourth quarter 2019 financial results, the company also provided an update on construction activities across its terminal segment.
Work has started on a series of projects at Kinder Morgan's Pasadena Terminal and Jefferson Street Truck Rack, located on the Houston Ship Channel. These $125 million projects include increasing flow rates on inbound pipeline connections and outbound dock lines, tank modifications that will add butane blending and vapour combustion capabilities to 10 storage tanks, expansion of the current methyl tert-butyl ether storage and blending platform, and a new dedicated natural gasoline inbound connection. The improvements are supported by a long-term agreement with a major refiner and a due to be completed by the end of the second quarter 2020.
Construction work has also begun for the butane-on-demand blending system for 25 tanks at the company's Galena Park Terminal. The $45 million project will include the construction of a 30,000-barrel butane sphere and a new inbound C4 pipeline connection as well as tank and piping modifications to extend butane blending to 25 tanks, two ship docks and six cross-channel pipelines. It is expected to be completed in the first quarter of 2021 and is supported by a long-term agreement with a midstream company.
A total of 105,000 barrels of additional ethanol storage capacity is being added to Kinder Morgan's Argo ethanol hub, including both the Argo and Chicago Liquids facilities. There will also be enhancements to the system's rail loading, rail unloading and barge loading capabilities.
An upgrade of the Battleground Oil Specialty Terminal, a leading fuel oil storage terminal on the Houston Ship Channel has also been authorised. The work comprises adding a pipeline to allow for segregation of high sulphur and low sulphur fuel oils. Detailed engineering and design work is underway on the $22 million project, which is expected to be operational in the fourth quarter of 2020.
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