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GEISMAR, LA-In an effort to expand its Gulf Coast operations, Kinder Morgan Energy Partners LP is building a terminal on ground-leased land and has acquired another facility in Bridge City to add to its storage and transportation muscle. The combined acquisition and expansion has a $41-million price tag.

A Kinder Morgan spokeswoman tells GlobeSt.com that the Geismar terminal will be built on land leased from Rubicon LLC, a polyurethane manufacturer that has a plant on the site. The rail-served terminal, which broke ground in the 9100 block of State Hwy. 75, will consist of a 140,000-sf warehouse as well as transfer and packaging facilities to handle and store chemicals. Details about the lease and amount of leased acreage weren’t available. The terminal, though, is slated for completion in fourth quarter 2008.

At the same time, Kinder Morgan has closed a deal with Dutch company Royal Vopak to buy the 173-acre terminal at 106 Bridge City Ave. in Bridge City. The building sizes aren’t available, but the Westwego plant has a storage capacity of about 750,000 barrels. The plant is rail and water-served.

The spokeswoman says the Royal Vopak terminal is set up to store petroleum products, chemicals and vegetable oils. “It also has the capability to store biodiesel, ethanol and other liquid products,” she adds.

The Geismar site is about 60 miles northwest of Bridge City. “These strategically located terminals complement our existing facilities in the area and will provide additional service opportunities for our customers,” Jeffrey R. Armstrong, Kinder Morgan president of terminals, says in a press release. “The acquisition and the expansion, upon completion, are expected to be immediately accretive to distributable cash flow at KMP.”

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