Americas News
Kinder Morgan to Aquire Four Fuel Efficient, LNG Conversion-Ready Jones Act Tankers
Kinder Morgan, Inc. (Kinder Morgan) Monday announced that it has signed a $568 million agreement with Philly Tankers LLC for the construction of four new fuel efficient Jones Act Tier II tankers that will be liquid natural gas (LNG) conversion-ready, and built at the Aker Philadelphia Shipyard in Philadelphia, Pennsylvania.
Kinder Morgan says that each of the four 50,000 DWT tankers will have a capacity of 337,000 barrels, and will bring the company's fleet to 16 ships by late 2017.
Two of the tankers, scheduled for delivery in late 2016 and early 2017, are said to already be under long-term contract to "a creditworthy oil company."
Meanwhile, contract discussions for the two remaining tankers, which are set to be delivered by late 2017, are said to be ongoing with "other creditworthy counterparties," with executed contracts expected to be completed by early 2016.
"These four new vessels will increase Kinder Morgan's Jones Act tanker fleet to 16 ships by late 2017, of which 14 are under long-term contracts with strong, creditworthy counterparties," stated Kinder Morgan.
"The new Tier II tankers obtained in this latest transaction will deliver cargo flexibility, improved fuel efficiency and incorporate the latest environmental protection features, including a Ballast Water Treatment System."
Commenting on the announced agreement, John Schlosser, President at Kinder Morgan Terminals, said "there continues to be strong demand for domestic waterborne transportation to move petroleum products and crude oil, and our fleet of highly efficient tankers will provide stable, fee-based cash flow to KMI shareholders for many years to come through multi-year contracts."
"This latest transaction clearly underscores Kinder Morgan's commitment to marine transportation of crude oil, condensate and refined products in the U.S. domestic trade."
In May, General Dynamics NASSCO held a keel laying ceremony for the first of three liquid natural gas (LNG) conversion ready Jones Act "ECO" tankers being built for SEA-Vista LLC (SEA-Vista), at the company's shipyard in San Diego.
