Kinder Morgan to spend $140M on network expansion

(AP)  HOUSTON — Kinder Morgan Energy Partners LP said Tuesday that it plans to invest about $140 million to expand its Gulf Coast-area coal terminal network and signed an agreement with Arch Coal Inc. to help support the upgraded facilities.

The two companies also are in discussions on an agreement that would include port space for coal shipments at Kinder Morgan's East Coast facilities.

If the expansion is completed as expected, it would allow Arch Coal to ship coal through Kinder Morgan terminals and provide the St. Louis mining company more port capacity for its seaborne coal business.

The Houston pipeline and energy storage company said it plans to add equipment and a railcar loop track at its Deepwater terminal in Houston. The project is expected to be completed in the second quarter of 2014 and will add to cash available to Kinder Morgan unitholders when finished.

Kinder Morgan's Deepwater and East Coast facilities offer dual rail access and the International Marine Terminal provides barge access to inland waterways.

"Securing additional port capacity further supports the expansion of Arch's international coal platform," John W. Eaves, Arch president and chief operating officer, said in a statement.

Shares of Kinder Morgan rose 26 cents to close at $88.30 per share and fell 1 cent in after-hours trading. Shares of Arch Coal fell 36 cents to close at $13.76 per share and fell an additional 1 cent in after-hours trading.

Scientific American

• Kinder Morgan to spend $140M on network expansion