21.10.15. After months of speculation, oil major BP has reached agreement to part-sell its US terminals. BP Products North America Inc has reached an agreement with Kinder Morgan, Inc to offload 15 refined products terminals and associated infrastructure in a transaction valued at US$350 million.
Kinder Morgan and BP will form 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. One terminal will be owned solely by KMI.
Kinder Morgan will own 75 percent of the JV, with BP retaining the balance. The terminals are located in the US Midwest, Northeast, Southeast and West Coast.
The terminals, with approximately 9.5 million barrels of storage, are pipeline-connected to key refining and processing centres across the United States and offer truck, vessel, and barge access and 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.
“We are excited to be partnering with BP on this joint venture,” said John Schlosser, president of Kinder Morgan Terminals. “By combining BP’s expertise in product trading and marketing with Kinder Morgan’s strength in operations and terminal development, the JV is well suited for growth opportunities in high-demand refined petroleum products markets. We believe this arrangement benefits BP, Kinder Morgan and third-party customers.”