Venture to add storage capacity at Cushing

By OGJ editors
HOUSTON, Mar. 1
-- Kinder Morgan Energy Partners LP is investing $25 million for a 50% interest in a tank farm at Cushing, Okla., to which a related joint venture will add storage capacity.

Kinder Morgan formed the JV with Deeprock Energy Resources LLC, the construction manager and terminal operator, and Mercuria Energy Trading Inc., which will remain anchor tenant for the next 5 years with an option to extend.

The JV will build three storage tanks with capacity totaling 750,000 bbl. Capacity of the tank farm now is 1 million bbl. Kinder Morgan also entered a development agreement in which it receives an option to participate in future expansions on the remaining 254 acres of Deeprock’s undeveloped land.

Partly because crude in storage at Cushing is at nearly capacity levels, West Texas Intermediate crude is trading at an unusually large discount to Brent Blend crude produced in the North Sea. Both crudes are important market benchmarks.

Related Articles

INTERNATIONAL BRIEFS

01/01/1990 WESTCOAST ENERGY INC., Vancouver, B.C., agreed to buy the utilities and propane business of Inter-City Gas Corp. (ICG), Winnipeg, Man., for $720 mi...

NEW IDEAS NEEDED IN BOWEN-SURAT BASINS

01/01/1990 Exploration for petroleum in Queensland began in the Bowen and overlying Surat basins in 1908, according to Lindsay Elliott of CSR Petroleum Ltd. i...

REFINERS FOCUS ON MODERN MAINTENANCE TECHNIQUES

01/01/1990 Effective maintenance techniques and modern maintenance technology are critical elements of the safe and efficient operation of refineries and petr...

HOW INDEXES HAVE RISEN

01/01/1990 Continuing a trend starting in 1983, the Nelson-Farrar refinery construction index rose slowly, from 1106.2 in January 1987, to 1184.1 in December ...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected