Crowley Sells Jones Act Tankers to Kinder Morgan
Jacksonville, Florida-based Crowley Maritime Corporation has announced that its petroleum services group has sold two Jones Act tankers to Kinder Morgan Energy Partners, L.P. (NYSE: KMP) for approximately $270 million.
The tankers, the MT Pennsylvania and MT Florida, each have 330,000 barrels of cargo capacity and have been under long term charter transporting gasoline, jet fuel, diesel and crude oil since being placed into service in 2012 and 2013, respectively.
Crowley says it will continue to manage the vessels with no changes in crewing or operations.
“This transaction helps Crowley maintain a healthy balance in our capital program,” said Tom Crowley, chairman and CEO. “We have invested more than $1.5 billion in new, U.S.-built tank vessels in recent years, giving us a fleet of 17 articulated tug barges (ATBs) and four new 330,000 barrel tankers being delivered in 2015 and 2016. We are committed to continuing to provide safe and reliable petroleum transportation to our customers.”
Under the new ship management agreement with Kinder Morgan for the two vessels, Crowley will continue to utilize sailors from the American Maritime Officers Union and Seafarers International Union, who have safely operated these tankers since their inception.
“Kinder Morgan’s continued expansion into the Jones Act tanker market demonstrates our commitment to provide customers with a variety of safe and efficient means to store and transport crude, petroleum products and chemicals,” said John Schlosser, president of KMP’s Terminals segment. “We are delighted to expand our relationship with Crowley, a premier provider of marine transportation services.”
The MT Pennsylvania and MT Florida will join Kinder Morgan’s existing fleet of five operating tankers. The company has also commissioned the construction of five additional tankers, which are expected to be delivered between 2015 and 2017.
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