Argus reported that Morgan Stanley subsidiary TransMontaigne Partners has sold its 50pc stake in a Houston Ship Channel terminal project to midstream operator Kinder Morgan, giving it 98pc of the Battleground Oil Specialty Terminal Company.

The first phase of the USD 430 million Bostco project involves the construction of 52 storage tanks with a total capacity of 6.6 million bl for handling residual fuels, feedstocks, distillates and other black oils on the Houston Ship Channel in Texas.

Kinder Morgan previously said almost all of the facility's initial capacity has been secured via contracts. Bostco first phase is expected to come on line in the third quarter of 2013 with the whole projected slated for completion by the first quarter of 2014. Construction began 14 December 2011.

Mr Jeff Armstrong Kinder Morgan Terminals president said “The project will include one of the deepest vessel drafts in the Houston Ship Channel and position Kinder Morgan extremely well for the growing trend of exporting petroleum-related products overseas.”

The remaining 2pc ownership of the project will be held by an unnamed customer at the facility. Bostco was a joint venture between TransMontaigne and Kinder Morgan, but Morgan Stanley directed TransMontaigne to sell its interest in the terminal.

(Sourced from Argus)