Oil major BP has signed a deal worth $350million to sell products storage assets in the US to Kinder Morgan.
The move includes 15 refined product terminals and associated infrastructure in the United States.
Following the agreement, the companies will form a joint venture limited liability firm terminal business to own 14 of the acquired assets which will be operated by Kinder Morgan.
Meanwhile the other terminal will be owned solely by Kinder Morgan.
The terminal has approximately 9.5million barrels of storage and are pipeline connected to key refining and processing centres across the US.
The offer extensive truck, vessel and barge access and terminal service capabilities.
BP said in connection with the transaction it will enter into commercial agreement to secure the long-term storage and throughput capacity from the JV.
The transaction is expected to close in the first quarter of 2016.
John Schlosser, president of Kinder Morgan Terminals, said:“We are excited to be partnering with BP on this joint venture.
“By combining BP’s expertise in product trading and marketing with Kinder Morgan’s strength in operations and terminal development, the JV is well suited for growth opportunities in high-demand refined petroleum products markets.
“We believe this arrangement benefits BP, Kinder Morgan and third-party customers.”
Kinder Morgan will own a 75 percent interest in the JV, with BP owning the balance. The terminals are located in the Midwest, Northeast, Southeast and on the West Coast.