KMP to start BOSTCO oil terminal service in US

US-based Kinder Morgan Energy (KMP) announced that it will begin the first phase of commercial operations at the Battleground oil specialty terminal (BOSTCO) project in the Houston Ship Channel.

This month, 20 out of 51 storage tanks built during phase one construction will be placed into service. The remaining tanks are expected to come online in the next six months. This month the company also plans to bring a two-berth ship dock and 12 barge berths into service.

BOSTCO terminal is a joint venture project between KMP and TransMontaigne Partners, which is being built with an investment of approximately $500m.

The 185-acre terminal is expected to hold a total capacity of 7.1 million barrels after the completion of phase two construction.

The terminal will handle ultra low sulphur diesel, residual fuels and other black oil terminal services.

Kinder Morgan plans to start phase two construction in the fourth quarter of 2014. This includes the building of an additional six ultra low sulphur diesel tanks that can handle 150,000 barrels, additional pipeline connectivity and high-speed loading at a rate of 25,000 barrels per hour.

Kinder Morgan Terminals president John Schlosser said: "We are pleased commercial operations have begun which provide the market with a unique, deepwater terminaling solution that provides high-speed loading and improved barge and ship access to the Texas Gulf Coast for the export and import of various refined products."

Kinder Morgan Energy Partners operates around 80,000 miles of pipeline and 180 terminals. The pipelines transport natural gas, gasoline, crude oil and CO2, and terminals store petroleum products and chemicals, as well as handle products such as ethanol, coal, petroleum coke and steel.

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Image: The 20 storage tanks, which are built during phase one construction, will be placed into service. Photo: courtesy of freedigitalphotos.net.