Kinder Morgan Inc. (NYSE: KMI) has finalized agreements with BP Products North America Inc. to acquire 15 refined products terminals and associated infrastructure in the US in a transaction valued at approximately $350 million. Kinder Morgan and BP will form a joint venture (JV) limited liability company terminal business to own 14 of the acquired assets, which Kinder Morgan will operate and market on the JV’s behalf. One terminal will be owned solely by KMI.
The terminals, with approximately 9.5 million barrels of storage, are pipeline-connected to key refining and processing centers across the US and offer extensive truck, vessel, and barge access and terminal service capabilities. In connection with the transaction, BP will enter into commercial agreements securing long-term storage and throughput capacity from the JV, which plans to market additional capacity to third-party customers. The transaction is expected to close in the first quarter of 2016.
Kinder Morgan will own a 75% interest in the JV, with BP owning the balance. The terminals are located in the Midwest, Northeast, Southeast, and on the West Coast.