Kinder Morgan Energy Partners has entered into a long-term contract with Methanex to support the construction of methanol storage capacity near Kinder Morgans Geismar liquids terminal (GLT) in Geismar, Louisiana, the company said on Monday.
Kinder Morgan will build, own and operate the storage tanks and related infrastructure, including improvements to its existing dock at GLT.
The assets will provide critical marine, rail and truck access in support of the 1 million tpy methanol production plant being relocated by Methanex from Chile.
The terminal infrastructure is expected to be in service during the second half of 2014, coinciding with the anticipated startup of the relocated plant.
The abundance of attractively priced domestic natural gas has led to a resurgence in the chemical and manufacturing industries, said John Schlosser, president of Kinder Morgan Terminals. We are very pleased to be able to leverage our existing footprint in Geismar in support of Methanexs significant capital project, and look forward to continuing to provide logistical and infrastructure solutions for Methanex and others as the renewed industrial development continues along the Gulf Coast and elsewhere."
In a separate deal, KMP also acquired Quality Carriers' 26-acre terminal located in Chester, South Carolina. The 19-tank facility currently provides storage for a single customer of 35,000 bbl and receives product by rail and distributes by truck.
"We are also pleased to be entering the public liquid terminal market in the greater Charlotte area and look forward to growing that business with new chemical customers," said Schlosser.