Kinder Morgan Partners expands in ethanol
Kinder Morgan Energy Partners LP is expanding its role in the transportation of renewable fuels.
By OGJ editors
HOUSTON, Jan. 20 -- Kinder Morgan Energy Partners LP is expanding its role in the transportation of renewable fuels.
The company reported the acquisition from US Development Group (USD) of three unit train ethanol handling facilities in Linden, NJ; Baltimore, Md.; and Dallas and the formation of a joint venture with USD to coordinate access to the facilities.
The acquisition value is about $195 million, including $80 million in Kinder Morgan Partners equity issued to USD.
The terminals, along with similar facilities already owned by Kinder Morgan Partners, “will create a nationwide distribution network of ethanol handling facilities connected by rail, marine, truck, and pipeline,” the company said.
Kinder Morgan Partners said it expects to handle more than 218,000 b/d of ethanol in 2010. The new transaction brings its total investment in the renewable fuels handling business to about $500 million.