By OGJ editors
HOUSTON, Oct. 22 -- Kinder Morgan Energy Partners LP signed an agreement with Shell Oil Products US to purchase five refined petroleum products terminals in the western US for $20 million.
Following the anticipated closing in the fourth quarter, KMP plans to invest an additional $8 million in the facilities. The terminals are in Colton and Mission Valley, Calif., Phoenix and Tucson, Ariz., and Reno, Nev. The terminals have a combined 28 tanks with 700,000 bbl storage capacity for gasoline, diesel and jet fuel.
Richard D. Kinder, KMP chairman and CEO, said, "As part of the transaction, Shell has entered into a long-term contract to store products in the terminals, providing KMP investors with an additional source of stable, fee- based income."
The acquisition was expected to be immediately accretive to cash available for distribution to KMP unitholders.
Besides additional storage capacity, the terminals provide Kinder Morgan with greater flexibility to meet shippers' needs, the company said.