Kinder Morgan buying fuel storage terminals majority stake from BP for $350m

Kinder Morgan buying fuel storage terminals majority stake from BP for $350m

US pipeline company Kinder Morgan is in the process of buying 15 fuel storage terminals from BP as the British oil giant divests itself of assets to cover some of the costs it incurred in the Deepwater Horizon settlements, according to Reuters.

Houston-based Kinder Morgan is paying $350m for the facilities and the two companies are creating a joint venture firm – to be called KM Phoenix Holdings – which will be responsible for running them.

Kinder Morgan will have a 75% stake in that new firm, BP 25%.

The Deepwater Horizon disaster was an explosion on a rig of that name in the US Gulf of Mexico in April 2010. It left 11 people dead and caused oil to pump pumped unstaunched into the Gulf waters for almost three months – the worst offshore oil calamity in US history.

BP was hit with around $20bn in court-imposed settlements and also spent more than $30bn in cleanup costs.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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