Alliance Energy acquiring Kinder Morgan terminal

September 20, 2013 By    

Alliance Energy Services signed an agreement to acquire a propane terminal from Kinder Morgan Energy Partners L.P. for about $5 million. The terminal, located in Benson, Minn., supplies more than 75 million gallons per year via delivery from the Cochin Pipeline System, according to a press release. The terminal also has a storage capacity of about 1.4 million gallons.

Kinder Morgan will cease receiving propane into Cochin in the spring of 2014 to prepare for the in-service of the company’s Cochin Reversal Project, which involves Kinder Morgan modifying the western leg of its pipeline to move light condensate northwest from Kankakee County, Ill., to terminal facilities near Fort Saskatchewan, Alberta, Canada. Propane deliveries to the terminal are expected to continue until May 2014.

Alliance Energy will build out the terminal to accept propane via rail. It expects to begin rail operations by June 2014 following the close of the acquisition.

“This acquisition represents the first step of our plan to add rail terminals that will bring Canadian and U.S. propane production to the upper Midwest markets,” says Jason Doyle, president of Alliance Energy Services.

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