Kinder Morgan Inc. (KMI) has finalized agreements with BP Products North America Inc. to acquire 15 refined products terminals and associated infrastructure in the US in a deal valued at $350 million.
KMI and BP will form a joint venture limited liability company terminal business to own 14 of the acquired assets, which Kinder Morgan will operate and market on the venture’s behalf. One terminal will be owned solely by KMI.
The terminals, with 9.5 million bbl of storage, are pipeline-connected to key refining and processing centers across the US and offer extensive truck, vessel, and barge access and terminal service capabilities, KMI says. In connection with the deal, BP will enter into commercial agreements securing long-term storage and throughput capacity from the JV, which plans to market additional capacity to third-party customers.
The deal is expected to close in first-quarter 2016.
KMI will own 75% interest in the venture, with BP owning the balance. The terminals are in the Midwest, Northeast, Southeast, and on the West Coast.