BP, Kinder Morgan to create U.S. fuel storage joint venture

Kinder Morgan and BP Products North America will create a new joint venture to operate fuel storage terminals across the U.S.

The agreement requires BP to sell 15 of its U.S. terminals to Kinder Morgan, the huge North American energy infrastructure firm, which will operate 14 of them though a new limited-liability company, while directly owning the 15th terminal.

In exchange, BP will obtain a 25% ownership stake in the new company, and will continue to use the terminals as key distributions points for BP fuel to gas stations, reported CSP News.

“By combining BP’s expertise in product trading and marketing with Kinder Morgan’s strength in operations and terminal development, the JV is well suited for growth opportunities in high-demand refined petroleum products markets. We believe this arrangement benefits BP, Kinder Morgan and third-party customers,” said John Schlosser, president of Kinder Morgan Terminals.

The deal is expected to be worth around $350 million, and will be finalized at the early stage of next year.