KMEP to build fifth Jones Act product tanker | Oil & Gas Journal

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.

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