Kinder Morgan waves $54M to Houston Ship Channel

HOUSTON – Houston-based Kinder Morgan Energy Partners LP is investing $54 million to expand its Battleground Oil Specialty Terminal Company LLC (BOSTCO) storage space along the Houston Ship Channel.

With the expansion Kinder Morgan will add six 150,000-barrel diesel tanks, new pipeline, and new deepwater vessel dock access. Construction on the expansion is expected to start in second quarter 2013 with operations beginning in 4Q 2014.

Kinder Morgan’s BOSTCO terminal currently employs more than 700 local contractors, and when completed, will require 75 full-time employees.

BOSTCO is a joint venture between Kinder Morgan, which is the majority owner and operator of the facility, and TransMontaigne Partners LP. The price tag for the BOSTCO project, which was green-lit in 2011, is now up to $485 million, and it is expected to start initial operations in 3Q 2013.

When it is completed, BOSTCO will have a capacity of 7.1 billion barrels of ultra-low sulphur diesel, residual fuel and black oil.