KMP partners with blending facilities
January 4, 2010
BY Luke Geiver
Posted Jan. 20, 2010
Kinder Morgan Energy Partners LP, has partnered with the ethanol blending and handling company, U.S. Development Group, in an effort to meet ethanol distribution demands. The joint venture agreement includes KMP's acquisition of three USD train ethanol handling terminals in Linden, N.J., Baltimore, Md., and Dallas, Texas. The price for the three terminals was approximately $195 million. According to KMP, the addition of the new terminals will create a ‘nationwide distribution network of ethanol handling facilities connected by rail, marine, truck and pipeline.'
"This new network will give our combined customers unparalleled access to major markets across the country," said KMP Terminals President Jeff Armstrong. KMP expects to handle in excess of 218,000 barrels per day of ethanol in 2010 between the new terminals, pipeline ventures, and other existing operations. The terminals purchased by KMP will be managed by USD. "We look forward to partnering with Kinder Morgan, a national leader in fuel transportation and storage, to revolutionize the way that bio-fuels are delivered to the market," said Dan Borgen, president and CEO of USD. "The venture will offer immediate, significant efficiencies for our customers, and we look forward to continuing our working relationship with them in the new expanded platform."
Each of the three ethanol terminals purchased by KMP come equipped with more than 80 railcar spots. The Linden terminal has 100 spots and can handle approximately 30,400 barrels per day; the Baltimore terminal has 150 spots and can handle approximately 8,100 barrels per day and the Dallas terminal has 85 railcar spots for approximately 17,545 barrels per day.
Combined with other acquisitions and projects already completed or underway, KMP has invested approximately $500 million in the renewable fuels handling business. "This new network will give our combined customers unparalleled access to major markets across the country," said KMP Terminals President Jeff Armstrong. "The formation of the venture, along with projects already underway, solidifies KM and USD's position on three coasts."
Kinder Morgan Energy Partners LP, has partnered with the ethanol blending and handling company, U.S. Development Group, in an effort to meet ethanol distribution demands. The joint venture agreement includes KMP's acquisition of three USD train ethanol handling terminals in Linden, N.J., Baltimore, Md., and Dallas, Texas. The price for the three terminals was approximately $195 million. According to KMP, the addition of the new terminals will create a ‘nationwide distribution network of ethanol handling facilities connected by rail, marine, truck and pipeline.'
"This new network will give our combined customers unparalleled access to major markets across the country," said KMP Terminals President Jeff Armstrong. KMP expects to handle in excess of 218,000 barrels per day of ethanol in 2010 between the new terminals, pipeline ventures, and other existing operations. The terminals purchased by KMP will be managed by USD. "We look forward to partnering with Kinder Morgan, a national leader in fuel transportation and storage, to revolutionize the way that bio-fuels are delivered to the market," said Dan Borgen, president and CEO of USD. "The venture will offer immediate, significant efficiencies for our customers, and we look forward to continuing our working relationship with them in the new expanded platform."
Each of the three ethanol terminals purchased by KMP come equipped with more than 80 railcar spots. The Linden terminal has 100 spots and can handle approximately 30,400 barrels per day; the Baltimore terminal has 150 spots and can handle approximately 8,100 barrels per day and the Dallas terminal has 85 railcar spots for approximately 17,545 barrels per day.
Combined with other acquisitions and projects already completed or underway, KMP has invested approximately $500 million in the renewable fuels handling business. "This new network will give our combined customers unparalleled access to major markets across the country," said KMP Terminals President Jeff Armstrong. "The formation of the venture, along with projects already underway, solidifies KM and USD's position on three coasts."
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