Kinder Morgan, Inc. (KMI) has reported that its terminals segment remained stable in the third quarter. “Terminals segment earnings were up 1 percent compared to the third quarter of 2017. Contributions from our liquids business, which accounts for approximately 81 percent of the segment total, were up 2 percent driven by storage capacity increases in key hubs along the Houston Ship Channel and Edmonton, Alberta, as well as the full-period impact of new-build Jones Act tankers delivered in 2017,” said Kim.
“These contributions were partially offset by the impact of contract expirations at certain of our crude-by-rail facilities in Edmonton and Houston, tank lease expenses at our Edmonton South Terminal following the sale of Trans Mountain, and continued softness in the New York Harbor refined products storage market, particularly at our Staten Island, New York location. Contributions from our bulk business were down 3 percent compared to the third quarter of 2017 with earnings impacted by certain asset divestitures and higher fuel and labor costs at our steel handling operations.”
“The Products Pipelines segment earnings were up 2 percent compared with third quarter 2017 performance due to contributions from the Cochin and Double H Pipelines, partially offset by reduced contributions from SFPP,” Kim said.
Total refined products volumes were up 2 percent for the third quarter versus the same period in 2017. Ethanol volumes for the quarter were up 9 percent while crude and condensate pipeline volumes were up 13 percent compared to the third quarter of 2017.
“The Natural Gas Pipelines segment had another outstanding quarter. The segment’s financial performance for the third quarter of 2018 was 9 percent higher relative to the third quarter of 2017, said KMI President Kim Dang. “The segment benefited from continued increased activity across our Midstream gathering and processing assets, primarily Hiland, KinderHawk, and South Texas due to increased drilling and production in the Bakken, Haynesville and Eagle Ford basins. The transmission assets saw higher revenue on EPNG and NGPL due primarily to increased Permian-related activity, on TGP due to projects placed in service, and on Colorado Interstate Gas (CIG) due to growing DJ basin production.”
Kinder Morgan Canada contributions were down 36 percent in the third quarter of 2018 compared to the third quarter of 2017, largely due to the loss of September 2018 Trans Mountain earnings subsequent to the sale closing on August 31, 2018.
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22nd October 2018
