Kinder Morgan Energy Partners LP (NYSE: KMP) has closed an agreement with Crowley Maritime Corp. to purchase two Jones Act tankers for $270 million. The MT Pennsylvania and the MT Florida engage in the marine transportation of crude oil, condensate, and refined products in the US, commonly referred to as the Jones Act trade, and are currently operating pursuant to multi-year charters with a major integrated oil company.
The vessels each have 330,000 barrels of cargo capacity and will join Kinder Morgan’s existing fleet of five operating tankers. The company previously commissioned the construction of an additional five tankers, which are expected to be delivered between 2015 and 2017. Crowley will continue to operate the vessels.
The transaction is expected to be immediately accretive to cash available to KMP unitholders upon closing, which is expected to be effective Nov. 1.