KMI will modify tanks for better butane blending and vapour combustion capabilities on 10 storage tanks, and expand the existing methyl tert-butyl ether (MTBE) storage and blending platform
Image: The development supported by a long-term agreement with a major refiner. Photo: Courtesy of WhisperToMe.
Kinder Morgan (KMI), a US-based energy infrastructure company, has announced its plans on a series of projects intended to increase efficiency, add product liquidity, and enhance blending capabilities at Houston Ship Channel facilities.
The new projects at Pasadena and Galena Park terminals would require more than $170m (£140m) capital investment, and are part of its refined products storage hub on the Houston Ship Channel.
The company said that to meet the growing customer demand, it manages 10 ship docks, 38 barge spots, 20 inbound pipelines connecting 10 regional refineries and chemical plants, 15 outbound pipelines, 14 cross-channel lines, and approximately 43million barrels of storage on the Houston Ship Channel, in its liquids terminal platform.
KMI Terminals president John Schlosser said: “These projects speak to Kinder Morgan’s continued commitment to excellence and to improving our already best-in-class facilities along the Houston Ship Channel.
“The announced improvements only serve to enhance our position as the market-leading refined petroleum products storage hub on the U.S. Gulf Coast. This offers our customers unmatched supply optionality and liquidity and modal efficiencies as they aim to maximize storage and blending economics and access domestic and global energy markets in the most cost effective manner possible.”
KMI’s developments at Pasadena and Galena Park terminals
KMI is planning to invest approximately $125m (£102m) to expand its Pasadena Terminal and Jefferson Street Truck Rack, to increase flow rates on inbound pipeline connections and outbound dock lines, reduce vessel load times and expand dock capacity.
It is also expected to carry out tank modifications for improved butane blending and vapour combustion capabilities on 10 storage tanks, and expand the existing methyl tert-butyl ether (MTBE) storage and blending platform, including a dedicated cross-channel MTBE line serving vessels being loaded at Pasadena’s North Docks.
The developments supported by a long-term agreement with a major refiner for approximately 2 million barrels of refined petroleum products storage capacity are expected to be completed by the end of the second quarter of 2020.
KMI will also invest over $45m (£37m) to develop and construct a butane-on-demand blending system for 25 tanks at its Galena Park Terminal. The project will comprise the construction of a 30,000-barrel butane sphere, a new inbound C4 pipeline connection, as well as tank and piping modifications to extend butane blending capabilities to 25 tanks, two ship docks, and six cross-channel pipelines.