Kinder Morgan buys tankers

Kinder Morgan Energy Partners announced last week that it has entered into a definitive agreement to acquire American Petroleum Tankers (APT) and State Class Tankers (SCT) from affiliates of The Blackstone Group and Cerberus Capital Management for $962 million in cash.

The announcement comes on the heels of news  that the company now has a 50-50 joint venture  with Imperial Oil to build a crude oil rail-loading which would be capable of loading trains capable of carrying up to 250,000 barrels of crude per day. 

APT and SCT are engaged in the marine transportation of crude oil, condensate and refined products in the U.S. domestic trade, commonly referred to as the Jones Act trade.

"This is a strategic and complementary extension of our existing crude oil and refined products transportation business," John Schlosser, president of KMP's Terminals segment, told Business Wire.

"We are purchasing tankers that provide stable fee-based cash flow through multi-year contracts with major credit worthy oil producers."

 

For more, see Wall Street Online. 

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