Kinder Morgan to spend $58M on Geismar plant expansion

Kinder Morgan Energy Partners announced this morning plans to invest $58 million to expand the chemical storage capacity at its Gesimar plant. The expansion is being driven by a long-term contract Kinder Morgan has signed to support Methanex Corp.’s relocation of a Chilean methanol production plant to Geismar. Kinder Morgan’s investment will include the construction of a methanol storage facility near its Geismar Liquids Terminal, according a news release. Kinder Morgan will build, own and operate the storage tanks and related infrastructure. “The assets will provide critical marine, rail and truck access in support” of the relocated Methanex plant, Kinder Morgan says in the release. The terminal infrastructure is expected to be in service during the second half of next year, coinciding with the anticipated startup of the relocated plant. “The abundance of attractively priced domestic natural gas has led to a resurgence in the chemical and manufacturing industries,” says Kinder Morgan Terminals President John Schlosser. “We are very pleased to be able to leverage our existing footprint in Geismar in support of Methanex’s significant capital project, and look forward to continuing to provide logistical and infrastructure solutions for Methanex and others as the renewed industrial development continues along the Gulf Coast and elsewhere.” In January, Methanex signed a 10-year deal with Chesapeake Energy Corp., which will supply natural gas to the relocated plant. You can read more about that deal from Daily Report here.