HOUSTON, Texas - Kinder Morgan Energy Partners, L.P. (NYSE: KMP) on June 13 announced that it has acquired a newly constructed petroleum coke (petcoke) terminal in Port Arthur, Texas, for approximately $67 million from TGS Development Group.
KMP will operate the facility, which handles petcoke from Total Petrochemicals USA's recently expanded Port Arthur refinery, and provide conveying, storage and ship loading services to Total pursuant to a 25-year contract.
The refinery is expected to produce more than one million tons of petcoke annually. The transaction, which was developed in partnership with TGS and Total, is expected to be immediately accretive to cash distributable to KMP unitholders.
"We are pleased to expand our large petcoke handling network and look forward to providing superior service to Total through this long-term contract," said Jeff Armstrong, president of Kinder Morgan's Terminals segment.
Kinder Morgan is the largest handler of petcoke in North America and expects to handle more than 13 million tons in 2011.
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