HOUSTON—Kinder Morgan Energy Partners, L.P. plans to invest approximately $58 million to build methanol storage capacity support near Kinder Morgan’s Geismar Liquids Terminal (GLT) in Geismar, La.
KMP has entered into a long-term contract with Methanex Corp. to relocate a one-million-tonne-per-year methanol production plant from Chile.
Kinder Morgan will build, own and operate the storage tanks and related infrastructure, including improvements to its existing dock at GLT which will support the relocated plant with marine, rail and truck access.
The terminal infrastructure is expected to be in service during the second half of 2014, coinciding with the anticipated startup of the relocated plant.
KMP has also acquired Quality Carriers, Inc.’s 26-acre terminal located in Chester, S.C. The 19-tank facility currently provides storage for a single customer of 35,000 barrels and receives product by rail and distributes by truck.
“The abundance of attractively priced domestic natural gas has led to a resurgence in the chemical and manufacturing industries,” said John Schlosser, president of Kinder Morgan Terminals.
Kinder Morgan Energy Partners, L.P. is a pipeline transportation and energy storage company. It owns an interest in or operates approximately 44,000 miles of pipelines and 180 terminals and has a combined enterprise value of approximately $100 billion.