Kinder Morgan has finalised the acquisition of 15 refined products terminals from BP Products North America.
Kinder Morgan and BP will form a joint venture limited liability company terminal business to own 14 of the acquired assets. Kinder Morgan will operate and market these facilities on behalf of the joint venture. One terminal will be owned solely by the North American energy infrastructure company.
The transaction has been valued at around $350 million (€308 million) and is expected to close in the first quarter of 2016.
The terminals have approximately 9.5 million barrels of storage and are connected via pipeline to key refining and processing centres across the US. They are also supported by extensive truck, vessel and barge access and terminal service capabilities.
As part of the transaction, BP will enter into commercial agreements securing long-term storage and throughput capacity from the joint venture, which plans to market additional capacity to third-party customers.
John Schlosser, president of Kinder Morgan, says: 'By combining BP's expertise in product trading and marketing with Kinder Morgan's strength in operations and terminal development, the joint venture is well suited for growth opportunities in high-demand refined petroleum products markets. We believe this arrangement benefits BP, Kinder Morgan and third-party customers.'
Kinder Morgan will own a 75% interest in the joint venture, with BP owning the balance. The terminals are located in the Midwest, northwest, southeast and the west coast.