Exxon Tries to Put the Worst Behind it With $20 Billion Writedown
By Jennifer Hiller HOUSTON, Nov 30 (Reuters) – Exxon Mobil Corp on Monday said it would write down the value of natural gas properties by $17 billion to $20 billion,...
Kinder Morgan Energy Partners LP (KMP) said it will invest in Battleground Oil Specialty Terminal Co., a venture with TransMontaigne Partners LP (TLP) that will build a $400 million oil terminal on the Houston Ship Channel, as the petroleum pipelines operator looks to expand its presence on the Texas Gulf Coast.
“There is increasing demand for an efficient and high performing terminal on the Texas Gulf Coast that can export fuel oil, which is used primarily in ship engines, power plants and industrial plants,” Kinder Morgan Terminals President Jeff Armstrong said.
The company expects its investment in BOSTCO to be accretive to cash distributable to its shareholders when the first phase of the project comes online by the third quarter of 2013.
The first phase of the project will construct 52 storage tanks that will have a capacity of 6.6 million barrels for handling fuel and other black oils. Future phases will tie the deepwater terminal to other Kinder Morgan assets in Houston, the company said.
Kinder Morgan Energy has also invested heavily in new projects along with its general partner as growing natural gas production boosts revenue for pipeline operators that transport the fuel from newly productive shale-rock formations in North America. At the same time, rising demand in Asia for the coal used in steelmaking is boosting demand for the limited partnership’s coal export terminals.
Last month, Kinder Morgan Energy said its third-quarter profit fell 33% on legal charges and write-downs, while Kinder Morgan Inc. (KMI), a pipeline operator that owns the general partner of Kinder Morgan Energy, reported soaring earnings from strong core performance of its limited partner.
Kinder Morgan Energy shares slid 27 cents to $75.49 in recent trading. The stock is up 17% in the past three months.
-By Nathalie Tadena, Dow Jones Newswires
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