Kinder Morgan to acquire pipelines, terminals of GATX for $1.15 billion
Primary assets included in the transaction are the CALNEV Pipe Line Company and the Central Florida Pipeline Company (CFPL), which transport petroleum products to high-growth markets in Nevada and Florida, along with 12 terminals that store petroleum products and chemicals.
Upon closing this transaction, KMP will become the second largest independent petroleum storage operator in the U.S. and the second largest independent chemical terminal operator in the U.S., based on capacity.
"This is a terrific acquisition of premier, fee-based businesses that have significant cost synergies with our existing operations and outstanding growth prospects," said Richard D. Kinder, chairman and CEO of KMP.
Asset details
CALNEV is a 550-mile refined petroleum products pipeline system originating in Colton, CA, and extending to the growing Las Vegas, NV, market. It transported an average of 112,000 bpd of gasoline, diesel and jet fuel in 1999. CALNEV interconnects in Colton with KMP's Pacific operations, a 3,300-mile refined petroleum products pipeline system that transports more than one million bpd of gasoline, diesel and jet fuel to destination markets in Arizona, California, Nevada, New Mexico and Oregon.
CFPL is a 195-mile refined petroleum products pipeline system consisting of a 16-inch gasoline pipeline and a 10-inch jet fuel and diesel pipeline transporting product from Tampa to the growing Orlando, FL, market. It transported an average of 85,000 bpd of gasoline, diesel and jet fuel in 1999.
The 12 terminals have a storage capacity of 35.6 million barrels for both petroleum products and chemicals. The largest of these terminals are located in Houston, New York, Los Angeles and Chicago, with a total capacity of approximately 31.2 million barrels. The other terminals are located in Philadelphia, Portland, OR, San Francisco and Seattle. In addition, KMP is acquiring six other terminals from GATX with a capacity of 3.6 million barrels that are part of the CALNEV and CFPL pipeline systems.
Edited by David Nakamura
Managing Editor, Hydrocarbon Online
dnakamura@hydrocarbononline.com