Kinder Morgan Energy Partners today announced plans to invest up to $100m to expand its terminal facilities to help serve the growing biodiesel market.
KMP has entered into long-term agreements with Green Earth Fuels to build up to 1.3 million barrels of tankage that will handle approximately eight million barrels of biodiesel production at KMP's terminals on the Houston Ship Channel, the
Green Earth Fuels has agreed to build biodiesel production facilities at various KMP terminal sites in these regions and has already begun construction on an 86 million gallon facility at KMP's Galena Park Terminal on the Houston Ship Channel that is expected to commence operations in July 2007.
‘Expanding our facilities to store and transfer biodiesel will benefit producers and help meet the country's growing demand for additional energy resources,’ said KMP Terminals President Jeff Armstrong.
In addition to biodiesel, KMP has significantly increased its handling of ethanol and continues to pursue additional ethanol opportunities in its terminals and products pipelines business units.
In 2006, KMP handled approximately 1.5 billion gallons of ethanol, almost 30 percent of the
ethanol market. The terminals group currently provides ethanol services at its facilities in
,
Harbor,
,
,
and
, while the products pipelines group provides storage and blending of ethanol at its terminals in
,
,
,
and
.
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