Venture to add storage capacity at Cushing

By OGJ editors
HOUSTON, Mar. 1
-- Kinder Morgan Energy Partners LP is investing $25 million for a 50% interest in a tank farm at Cushing, Okla., to which a related joint venture will add storage capacity.

Kinder Morgan formed the JV with Deeprock Energy Resources LLC, the construction manager and terminal operator, and Mercuria Energy Trading Inc., which will remain anchor tenant for the next 5 years with an option to extend.

The JV will build three storage tanks with capacity totaling 750,000 bbl. Capacity of the tank farm now is 1 million bbl. Kinder Morgan also entered a development agreement in which it receives an option to participate in future expansions on the remaining 254 acres of Deeprock’s undeveloped land.

Partly because crude in storage at Cushing is at nearly capacity levels, West Texas Intermediate crude is trading at an unusually large discount to Brent Blend crude produced in the North Sea. Both crudes are important market benchmarks.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...