Kinder Morgan Energy Partners

{{#badges: CoalSwarm |Navbar-Coalexports}}Kinder Morgan Energy Partners, L.P. (KMP) is a pipeline transportation and energy storage company in North America with more than 37,000 miles of pipelines and 180 terminals transporting gasoline, natural gas, and CO2 for enhanced oil recovery projects. Its terminals handle coal, petroleum coke, and steel products. KMP is owned by Kinder Morgan, Inc. (NYSE: KMI), an energy transportation and storage company in the U.S.

Kinder acquires Trans-Global Solutions

In April 2005, Kinder Morgan Energy Partners purchased seven bulk terminal operations from Trans-Global Solutions, Inc. (TGS) for approximately $245 million to "make KMP the largest handler of petroleum coke (petcoke) in the United States," Chairman, CEO and President Richard D. Kinder said. The TGS bulk terminal assets are located in Texas, including facilities at the Port of Houston, the Port of Beaumont and the TGS Deepwater Terminal located on the Houston Ship Channel.

"TGS has long-term petcoke handling contracts in place with major Texas refineries, including ExxonMobil, Shell, Lyondell-Citgo, ConocoPhillips and Premcor, which make these fee-based operations an ideal fit for KMP," Kinder said. In 2005, TGS projected its terminals will handle about 10 million tons of petcoke, and KMP expects to handle about 7 million tons of petcoke at its existing facilities, for a combined 33 percent of the domestic petcoke market. Petcoke is a carbonaceous solid residual by-product of the oil refining coking process and is used primarily in the cement and power generation industries. At closing, KMP will execute a development agreement with TGS, whereby TGS will develop new solid bulk projects, including petcoke and coal projects, which KMP will have the right to purchase.

Kinder Morgan Energy Partners and coal

At a 2011 investor conference, KMP representatives said demand for coal exports will be a driver of future growth for the Terminals segment, and that the company had entered into two significant contracts with customers to handle coal and is actively pursuing additional coal export opportunities:

Myrtle Grove Midstream Terminal - The Myrtle Grove Midstream Terminal is along the lower Mississippi River in Myrtle Grove, Louisiana. In Feb. 2011, pipeline and storage facility operator Kinder Morgan Energy Partners LP said it agreed with Massey Energy to expand the terminal to handle up to 6 million tons of coal. The 15-year deal anticipates a minimum of 4 million tons of coal per year. Most of the coal will come from Massey mines in central Appalachia for export. Kinder Morgan said it will invest $70 million to expand storage, conveyor belts and environmental controls at the terminal by mid-2012.

The company also plans 7 million ton per year expansions of coal export facilities at the Charleston SC Shipyard River Terminal and at the Fairless Hills Terminal in Philadelphia PA in 2011.

Kinder to export coal from Port of Houston

In late April 2011 Kinder Morgan Energy Partners stated that the company will begin exporting Colorado mined coal through its bulk terminal at the Port of Houston in Houston, Texas. According to its first quarter earnings report, Kinder wrote that they had signed an agreement with a “large western coal producer” and will invest about $18 million to expand the ship channel facility.

Kinder stated it will be the first time Western coal will be exported from the Port of Houston. In February 2011, Kinder Morgan inked a deal with Massey Energy to export up to 6 million tons of coal annually through Kinder’s Myrtle Grove, La., facility.

The company also plans 7 million ton per year expansions of coal export facilities at the Charleston SC Shipyard River Terminal and at the Fairless Hills Terminal in Philadelphia PA in 2011.

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