Americas News
TransMontaigne to Renew Investment in Houston Terminal
TransMontaigne Partners L.P. [NYSE:TLP] (TransMontaigne) says it may take a new ownership interest in the Battleground Oil Specialty Terminal Company LLC (BOSTCO) terminal project on the Houston Ship Channel in the U.S..
The initial $415 million phase of the project includes the construction of 50 storage tanks with a capacity of 6.1 million barrels for residual fuels, feedstocks, distillates, and other black oils.
The project, intended to facilitate the export of petroleum products overseas, also includes one of the deepest vessel drafts in the ship channel.
TransMontaigne started the project in November 2010, acquiring about 190 acres of land and then starting design, permitting, and initial development of the terminal, and then sold 50 percent of its interest in the project to a subsidiary of Kinder Morgan Energy Partners L.P. [NYSE:KMP].
In October of 2011, Morgan Stanley, which controls TransMontaigne’s general partner, said it would not approve any significant acquisitions or investments by the company due to uncertainties surrounding Morgan Stanley’s regulation under new U.S. rules concerning financial companies’ non-banking activities.
TransMontaigne now says it has received approval from Morgan Stanley to acquire 48.75 percent ownership in the project and that it expects the deal to close by January 19, 2013.
The boom in shale oil has pushed U.S. oil production up dramatically, leading to increased exports, according to a report by the International Energy Agency (IEA), which predicted the nation will become the world's biggest oil producer around 2020.
