Kinder Morgan enters crude oil storage JV

Kinder Morgan has entered into a crude oil joint venture with Deeprock Energy and Mercuria in Cushing, Oklahoma. KMP is investing USD 25 million for a 50% stake in an existing 1 million barrels capacity crude oil tank farm and the construction of three new storage tanks. The new tanks will have an incremental storage capacity of 750,000 barrels and are scheduled to be in service by the third quarter 2011. Deeprock will continue their position as construction manager and carry on operating the terminal. Mercuria will be the anchor tenant for the next five years with an option to extend. KMP has also entered into a development agreement with Deeprock that gives KMP an opportunity to participate in potential expansions on Deeprock’s remaining 254 acres of undeveloped land.

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