February 2, 2016 [OPIS] - Kinder Morgan Inc. said on Monday that it has closed the previously announced plan to acquire 15 refined products terminals from BP Products North America Inc. in a transaction valued at approximately $350 million.
The terminals are key distribution facilities for major refined products consuming markets and have approximately 9.5 million bbl of storage and associated infrastructure in the United States.
Kinder Morgan and BP Products North America have also formed a joint venture limited liability company (JV) terminal business to own 14 of the acquired assets, which Kinder Morgan will operate and market on the JV’s behalf.
The 15th terminal will be owned and operated solely by KMI.
In connection with the transaction, BP has entered into commercial agreements securing long-term storage and throughput capacity from the JV, which will market additional capacity to third-party customers.
Kinder Morgan owns a 75% interest in the JV, with BP owning the balance. This investment is included in Kinder Morgan’s 2016 capital plan as discussed in its Jan. 27 investor conference.
The terminals are located in the Midwest, Northeast, Southeast and on the West Coast at: Rochelle, O’Hare (100% Kinder Morgan), Chicago and Wood River in Illinois; Dayton and Cincinnati, Ohio; Brooklyn, N.Y.; Carteret, N.J.; Curtis Bay, Md.; Port Everglades, Fla.; Atlanta and Doraville, Ga.; Indianapolis, Ind.; Spring Valley, Minn.; and Richmond, Calif.
The transaction includes approximately 160 former BP employees.
