Kinder Morgan Energy Partners LP (KMEP) has expanded its contract with General Dynamics Nassco for the design and construction of an additional 50,000 dwt LNG-conversion-ready product tanker with a cargo capacity of 330,000 bbl.
Construction is slated to start in fourth-quarter 2015 with delivery expected in second-quarter 2017. The tanker will be constructed as a sister tanker to the four Jones Act tankers currently under construction at the Nassco shipyard in San Diego.
KMEP in January acquired APT and State Class Tankers for $960 million. At that time, KMEP purchased five operating vessels and noted it would invest an additional $214 million to complete funding for the construction of four new Jones Act-qualified vessels, which will be delivered between November 2015 and October 2016. KMEP says pricing for the additional tanker is consistent with the previously reported transaction.