TGS sells bulk terminal operations

News

Kinder Morgan Energy Partners today announced it has purchased seven bulk terminal operations from Trans-Global Solutions for approximately $245 million.

(KMP) today announced it has purchased seven bulk terminal operations from

(TGS) for approximately $245 million.

The acquisition will make KMP the largest handler of petroleum coke (petcoke) in the United States. Petcoke is a carbonaceous solid residual by-product of the oil refining coking process and is used primarily in the cement and power generation industries.

KMP will pay approximately $184 million in cash and $46 million in KMP limited partner units at closing - which is expected by the end of April - and an additional $15 million in KMP limited partner units two years after closing.

The TGS bulk terminal assets are located in Texas, including facilities at the Port of Houston, the Port of Beaumont and the TGS Deepwater Terminal located on the Houston Ship Channel.

"TGS has long-term petcoke handling contracts in place with major Texas refineries, including ExxonMobil, Shell, Lyondell-Citgo, ConocoPhillips and Premcor, which make these fee-based operations an ideal fit for KMP," said Chairman, CEO and President Richard D. Kinder.

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