Houston, 7 November (Argus) — A joint venture between midstream operators Kinder Morgan and TransMontaigne Partners won approval today to lease Port of Houston Authority land and also got a marine construction permit for its 10.3mn bl terminal that will handle residual fuel oil, slurry oil, crude, blendstocks, vacuum gas oil and possibly diesel.
Battleground Oil Specialty Terminal Company (Bostco) will have a 25-year lease on 55 acres of port authority land and will construct its terminal on and adjacent to the Barnes Island and Peggy Lake areas on the Houston Ship Channel, the port authority said.
Construction is slated to start within 30 days, according to Bostco project director and co-founder Yaron Gisser. The terminal is scheduled to be ready to go into service by the third quarter of 2013 – slightly later than the company's previous estimates due to a longer than expected permitting process.
The Battleground facility plan calls for building out four deepwater ship docks, 16 barge spots and 10.3mn bl of storage capacity. But it will begin with two ship docks, 12 barge spots 12 rail spots and 6.6mn bl of black oil storage, with the rest phased in over time, Gisser said.
Crude capacity will be “deferred a bit” – the company has plans for crude pipeline connections – and Bostco could later expand the facility up to 24 rail spots, according to Gisser.
The terminal will compete primarily with Houston Fuel Oil Terminal. Bostco and Enterprise's facilities will share use of a barge channel, the port authority said today.
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