Kinder Morgan invests in new crude by rail project at Houston Terminals

Thursday, February 21, 2013
  • The facility will have the capability to unload and load up to three unit trains per day of crude oil and condensate as well as provide for up to 100,000 bpd of barge loading capacity.

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) announced KW Express LLC, a partnership between KMP and Watco Companies L.L.C., has entered into a long-term agreement with Mercuria Energy Trading Company Inc., to construct a 210,000 barrel per day (bpd) crude by rail project at the Greens Port Industrial Park on the Houston Ship Channel. The project will allow Mercuria Energy Trading, Inc. to source crude from various origination locations including Cushing, Okla., West Texas, the Bakken shale area and western Canada for delivery by rail into the Houston Ship Channel for distribution to various refiners via pipeline and barges. The facility will have the capability to unload and load up to three unit trains per day of crude oil and condensate as well as provide for up to 100,000 bpd of barge loading capacity. KW Express will own 85 percent of the project and, together with Watco, construct and operate the project once completed. Mercuria will own the remaining 15 percent interest of the project.

'This will be the first major crude by rail destination facility in the Houston area with the ability to deliver into the largest refining complex in the world,' said John Schlosser, Kinder Morgan Terminals president. 'It will provide U.S. and Canadian producers much needed market access and optionality to deliver their crude oil production.'

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

Related News

Join 70,000 other oil and gas professionals

Network with others, build your profile, and receive the latest oil and gas news in your inbox. It's free!

Your details are never shared or sold. We hate spam too.

» More Jobs       » Upload a free Job       » Upload your CV

More Europe Jobs

More Global Jobs

Opinion & Commentary

  • Nanotechnology hits the oilpatch
    Dropping energy prices—for both oil and natural gas—has investors and analysts checking to see what the break-even price is for oil production in each play ...
  • Eight pieces of our oil price predicament
    A person might think that oil prices would be fairly stable. Prices would set themselves at a level that would be high enough for the majority of producers, so ...

» More Opinion & Commentary         » Write for us             RSS RSS

Oil & Gas Training

Mastering 4D Seismic
Ian Jack, London, 06 Nov 2014

Petroleum Geology of West Africa
Duncan Macgregor, London, 12 Nov 2014

Introduction to Contingency Planning: The value to oil and gas companies in high-risk areas
Mark Theobald, London, 18 Nov 2014

All Upcoming Training


Opinions & Commentary

Why it's different this time

by Keith Schaefer

Read More »