Kinder Morgan to Buy Texas Acreage - Analyst Blog
17 Mai 2013 - 5:10PM
Zacks
Pipeline operator Kinder
Morgan Energy Partners LP (KMP) has decided to make an
investment of $106 million to purchase about 20 acres of land near
its Pasadena terminal, Texas.
The partnership proposes to build nine new tanks and a new barge
dock at its Galena Park terminal. Each tank will have a capacity of
1.2 million barrels and have long-term customer agreements.
The new barge dock is likely to alleviate the current
bottleneck at the Houston Ship Channel. It will also augment the
existing infrastructure at the Pasadena terminal by providing
additional handling capacity to about 50 barges per month.
The purchase of the new acreage is an effort to support a future
crude condensate and refined products terminal competent of
managing 10 tanks, each with a capacity of 150,000 barrel. This
project would be linked to the Explorer Pipeline.
The projects are in response to the growing yield from the Eagle
Ford shale oil play in Texas. This has prompted the immediate
consideration to build new infrastructure and help in carrying the
additional yield to the markets.
Kinder Morgan is the largest independent owner and operator of
petroleum product pipelines in the U.S. Its pipelines transport
natural gas, refined petroleum products, crude oil, carbon dioxide
and other products, while its terminals store petroleum products
and chemicals and handle bulk materials such as coal and petroleum
coke. The terminals store petroleum products and chemicals, apart
from handling bulk materials such as coal and petroleum coke.
Kinder Morgan carries a Zacks Rank #3 (Hold). However, there are
other stocks in the oil and gas industry like Dawson
Geophysical Company (DWSN), SM Energy
Company (SM) and Exterran Holdings, Inc.
(EXH) that appear more attractive in the short term. All three
stocks carry a Zacks Rank #1 (Strong Buy).
DAWSON GEOPHYS (DWSN): Free Stock Analysis Report
EXTERRAN HLDGS (EXH): Free Stock Analysis Report
KINDER MORG ENG (KMP): Free Stock Analysis Report
SM ENERGY CO (SM): Free Stock Analysis Report
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