KMEP, Watco to build Houston crude-by-rail terminal

KW Express LLC, a partnership of Kinder Morgan Energy Partners LP and Watco Cos. LLC, has agreed with Mercuria Energy Trading Co. Inc. to build a 210,000 b/d crude oil rail and barge terminal at the Greens Port Industrial Park on the Houston Ship Channel. Mercuria will source crude from Cushing, Okla., West Texas, the Bakken shale area, and western Canada into the HSC for distribution to refiners via pipeline and barges.

The terminal will unload and load up to three unit trains/day of crude and condensate and provide up to 100,000 b/d of barge loading capacity. KW Express will own 85% of the project and will build and operate it. Mercuria will own the rest.

KMEP last year formed a joint venture with Martin Midstream Partners LP to develop a Permian basin crude and NGL rail terminal in Pecos, Tex. (OGJ Online, Feb. 27, 2012). A Watco subsidiary built and operates the terminal Watco’s eighth shale oil crude-by-rail terminal.

Mercuria joined KMEP and Deeprock Energy Resources LLC as anchor tenant in a 2011 joint venture to add 750,000 bbl of crude storage at Cushing (OGJ Online, Mar. 1, 2011).

Related Articles

BHI: US drilling rig count holds steady at 1,931

09/19/2014

The US drilling rig count was unchanged at 1,931 rigs working during the week ended Sept. 19, Baker Hughes Inc. reported.

ExxonMobil, Linn to make second asset exchange this year

09/19/2014 ExxonMobil Corp. has agreed to trade interest in 500 net acres from South Belridge field near Bakersfield, Calif., to Linn Energy LLC, Houston, in ...

OGJ Newsletter

09/01/2014

International news for oil and gas professionals

Parsley Energy adds Permian basin acreage

08/26/2014 Parsley Energy Inc., Midland, Tex., has agreed to buy from “multiple sellers” undeveloped and productive acreage in Reagan County, Tex., for a tota...

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