Kinder Morgan's Second-Phase Expansion at BOSTCO Terminal on Drawing Board

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Researched by Industrial Info Resources (Sugar Land, Texas)--Kinder Morgan Energy Partners LP (NYSE:KMP) (Houston, Texas) has completed construction at a terminal in the Houston Ship Channel owned by Battleground Oil Specialty Terminal Company LLC (BOSTCO). The terminal will hold roughly 6.5 million barrels of various black oils in 52 tanks. The second phase of construction, which has not yet gone to permitting, is due to begin operations by the end of 2014, according to Industrial Info's data.

Each tank will range from 30,000 to 400,000 barrels of capacity. The terminal also has access to deepwater vessel docks, barge docks, and rail car-unloading areas. BOSTCO already has plans to expand this facility in the coming year.

The first phase of construction began on December 14, 2011, meaning it has taken just under two years to complete. Docks on site come in three sizes: 80 x 100 feet, 60 x 60 feet, and 30 x 60 feet. The terminal also has siding for 112 rail cars, unloading spots for 30, and a small truck rack. For more information, including the sizes of the 52 tanks, see September 30, 2013, article - Houston Ship Channel's Battleground Oil Terminal to Receive First Liquids this Week.

The second-phase expansion will add roughly 900,000 barrels of storage capacity, additional ship and barge berthing, and truck unloading facilities that can accommodate four trucks at a time. The new ship berths will be able to handle vessels with drafts up to 45 feet. After Phase II is completed, the site will boast roughly 7.4 million barrels of storage capacity, and be able to handle up to 19 barges, four deepwater ships, 112 rail cars (unloading capacity: 30 cars), and more than six trucks. This plant will store residual fuels, distillates, and feedstocks, then add low-sulfur diesel storage in Phase II.

BOSTCO is 55% owned by Kinder Morgan, and 45% owned by Transmontaigne Partners LP (NYSE:TLP) (Denver, Colorado).

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