Kinder Morgan Buys Four Newbuilding Resales from Philly Tankers

NYSE-listed energy infrastructure company Kinder Morgan has signed a definitive agreement valued at an all-in price of USD 568 million with Philly Tankers LLC to take assignment of contracts for the construction of four new 50,000 dwt, Tier II tankers to be constructed at the Aker Philadelphia Shipyard in Philadelphia, Pennsylvania.

Each LNG-conversion-ready tanker will have a capacity of 337,000 barrels. The Jones Act vessels will be delivered to Kinder Morgan between November 2016 and November 2017.

The first two that are scheduled for delivery in late 2016 and early 2017  are under long-term contracts. Contract discussions for the two tankers to be delivered by late 2017 are ongoing, and executed contracts are expected to be completed by early 2016. Approximately 10 percent of each vessel’s all-in price will be paid upon construction start, with the pro-rata balance due upon each ship’s delivery.

These four new vessels will increase Kinder Morgan’s Jones Act tanker fleet to 16 ships by late 2017, of which 14 are under long-term contracts.

”There continues to be strong demand for domestic waterborne transportation to move petroleum products and crude oil, and our fleet of highly efficient tankers will provide stable, fee-based cash flow to KMI shareholders for many years to come through multi-year contracts,” said Kinder Morgan Terminals President John Schlosser.

”This latest transaction clearly underscores Kinder Morgan’s commitment to marine transportation of crude oil, condensate and refined products in the U.S. domestic trade.”

Kinder Morgan currently has seven product tankers on the water and five tankers that are in various stages of design and construction at the NASSCO shipyard in San Diego, California, scheduled for delivery between late 2015 and mid-2017.

The company entered the Jones Act product tanker business with an initial purchase of five ships in January of 2014 via the acquisition of American Petroleum Tankers and State Class Tankers for USD 960 million in cash.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2019 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 1

The 9th Annual Event Green Shiptech China Congress 2020

The 9th Annual Event- Green Shiptech China Congress 2020 will be held on next…

read more >

CWC World LNG Summit & Awards Evening

The CWC World LNG Summit & Awards Evening will be returning to Rome in 2019 to celebrate it’s 20th year.

read more >

Salvage & Wreck

Salvage and Wreck Removal Conference will focus on Casualty management case studies, Dealing with hazardous cargo and container ship fires…

read more >

Maritime Reconnaissance and Surveillance Technology

As varied threats in the Mediterranean Sea continue to proliferate, the need to advance…

read more >