April 2, 2013 [OPIS] - Kinder Morgan Energy Partners LP said on Monday that KMP will invest approximately $58 million to expand its chemical storage capacity.
“The abundance of attractively priced domestic natural gas has led to a resurgence in the chemical and manufacturing industries,” said John Schlosser, president of Kinder Morgan Terminals.
“We are also pleased to be entering the public liquid terminal market in the greater Charlotte area and look forward to growing that business with new chemical customers,” he added.
KMP has entered into a long-term contract with Methanex Corporation to support the construction of methanol storage capacity near Kinder Morgan’s Geismar Liquids Terminal (GLT) in Geismar, La.
Kinder Morgan will build, own and operate the storage tanks and related infrastructure, including improvements to its existing dock at GLT.
The assets will provide critical marine, rail and truck access in support of a 1-million-tonne-per-year methanol production plant being relocated by Methanex from Chile.
The terminal infrastructure is expected to be in service during the second half of 2014, coinciding with the anticipated startup of the relocated plant.
KMP has also acquired Quality Carriers Inc.’s 26-acre terminal located in Chester, S.C. The 19-tank facility currently provides storage for a single customer of 35,000 barrels and receives product by rail and distributes by truck.
