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Kinder Morgan’s Terminals and Products Pipelines segments

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Mar. 9 2015, Published 4:52 p.m. ET

Terminals segment assets

We discussed Kinder Morgan’s (KMI) CO2 segment assets in the previous segment. Here is an overview of Kinder Morgan’s Terminals and Products Pipelines segment’s assets.

Kinder Morgan (KMI) is one of the largest independent operators of liquids terminals in the US. Its terminals are located throughout the US and in some parts of Canada. The terminals handle products like petroleum, chemicals, ethanol, and other dry-bulk material services facilities, including all transload, engineering, conveying, and other in-plant services.

Kinder Morgan’s strategy is to place its assets in key locations to provide flexibility to attract new customers and retain existing customers at its terminals. Its increasing customer base thus provides opportunities to expand.

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Compared to 82 dry bulk terminals in 2013, the company has 78 such terminals in 2014. Liquids terminals have not changed much, from 40 in 2013 to 39 last year. Read part seven of this series to find out about the volumes and financial performance of this segment. The other midstream operators that have significant terminal operations include Enterprise Products Partners (EPD), Spectra Energy (SE), and Targa Resources (TRGP). EPD makes up 10% of the Alerian MLP ETF (AMLP).

Products Pipelines assets

Kinder Morgan (KMI) transports refined petroleum products, crude oil and condensate, and NGLs (natural gas liquids) through various pipelines and associated terminals. The company also owns a transmix operation facility. Here is an account of its assets:

The terminals act as short-term product storage, truck loading, vapor handling, additive injection, dye injection, and ethanol blending operations. For short-haul movements of products, Kinder Morgan’s pipelines compete against independent products pipelines, trucking, and marine transportation firms.

Kinder Morgan Canada

The fifth subsidiary of Kinder Morgan is known as Kinder Morgan Canada. This includes Kinder Morgan’s wholly owned and operated Trans Mountain Pipeline System and a 25-mile jet fuel pipeline system.

  1. The Trans Mountain Pipeline System is a 713-mile crude oil and refined petroleum pipeline. It originates in Edmonton, Alberta and delivers to the west coast of British Columbia. The capacity of the line at Edmonton ranges from 300,000 to 400,000 barrels per day.
  2. The Jet Fuel Pipeline System is a 25-mile aviation fuel pipeline that serves the Vancouver International Airport in Canada.
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