Cargo Business Newswire

Tuesday, September 23, 2014

Kinder Morgan builds $1.5B oil logistics hub in Houston

To establish its position in the shale boom market and exploit the surge of domestic/Canadian crude flowing through the U.S. Gulf Coast, logistics giant Kinder Morgan Energy Partners is spending over $1.5 billion in Houston to build the most flexible oil and fuel transport hub in the country.

The company's expanding infrastructure buffet, located at the jam-packed Houston Ship Channel, is adjacent to the largest concentration of refiners in the nation.

Kinder Morgan executives say customers want multiple options to switch delivery modes quickly and grab the best price for refinery feedstocks. They need more dock and storage space to handle swelling volumes of fuel being shipped overseas.

"More of them are producing more than they can consume in the U.S. So they want to take it to water, either for movement up and down the coast ... or to export because you see a tremendous amount of growth," said John Schlosser, president of Kinder Morgan's terminal division, talking about refiners.

The company’s latest move is to add storage and pipeline connections to final domestic destinations, a huge oil-by-rail offloading operation, and a wider export platform.

"It gives us the opportunity to touch customers in an additional way beyond just the terminal or the pipeline footprint," Schlosser said.

For more of the Reuters story: in.reuters.com

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