Kinder Morgan buys rest of California transmix plant
Kinder Morgan Energy Partners LP has acquired a 50% interest in a Colton, Calif., transmix processing plant from Duke Energy Merchants, a unit of Duke Energy Corp., for $11 million. The transaction makes KMP sole owner of the plant. Duke Energy will market the transmix from the plant for 10 years.
Kinder Morgan Energy Partners LP has acquired Duke Energy Merchants' 50% interest in a Colton, Calif., transmix processing plant for $11 million, making KMP the sole owner.
Duke Energy, a unit of Duke Energy Corp., will market the transmix from the plant for 10 years.
Transmix is a byproduct of refined products pipeline operations, created by the mixing of different specification products during pipeline transportation. Transmix processing plants split the substance back into specification products such as unleaded gasoline and diesel fuel.
The Colton plant, located at KMP's terminal, has 5,000 b/d capacity. It mostly processes transmix from KMP's Pacific operations.
Kinder Morgan Pres. and CEO Richard D. Kinder said the acquisition strengthens the company's fee-based transmix processing business.
KMP says it is the largest processor of transmix in the US. Recently, the company bought Buckeye Pipe Line Co.'s transmix business for $37 million in cash plus net working capital (OGJ Online, Oct. 13, 2000).
