Kinder Morgan Consolidates Its Pipeline Holdings
Chevron May Sell Hawaii Refinery, Terminals
S.F. To Require Climate Change Warnings on Nozzles
CHS To Increase Diesel Production in Montana
Love' s To Offer CNG in New Mexico, Arizona

KINDER MORGAN CONSOLIDATES ITS PIPELINE HOLDINGS

HOUSTON, TX. — Kinder Morgan has received approval to consolidate its pipeline companies back into Kinder Morgan Incorporated in a deal valued at approximately $70 million.

Included in the deal are Kinder Morgan Energy Partners, L.P., Kinder Morgan Management, LLC, and El Paso Pipeline Partners, L.P., all of which are controlled by KMI and were operating as separate business entities.

The proposed mergers — the consideration of which is valued at approximately $70 billion in the aggregate — collectively represent the largest energy mergers and acquisition transaction since the merger of Exxon and Mobil.

The combined Kinder Morgan Inc. will be the largest energy infrastructure company in North America and the third largest energy company overall with an estimated enterprise value of approximately $140 billion.

CHEVRON MAY SELL HAWAII REFINERY, TERMINALS

HONOLULU, HI. — Chevron is reportedly looking to sell its assets in Hawaii, including its refinery in Kapolei on Oahu, one of the five refineries operated by the major oil company in the United States.

Also reportedly on the block are Chevron's Hawaii pipeline and five terminals operating in the Hawaiian islands.

"No decision has been made at this time other than to determine the level of interest of potential buyers," spokesman Braden Reddall said in an official statement.

Reddall also noted that with a capacity of 54,000 barrels per day, the Kapolei plant "is among the smallest" refineries operated by Chevron. The Kapolei plant has been in operation since 1961 and employs approximately 200 people.

Last year, Tesoro Corporation sold its Hawaiian refinery, terminal operations, and marketing assets to Houston-based Par Petroleum after being on the market for over a year.

S.F. TO REQUIRE CLIMATE CHANGE WARNINGS ON NOZZLES

SAN FRANCISCO, CA. — The cities of San Francisco and Berkeley, CA., have passed legislation to require gasoline stations to put "climate change warning labels" on all gasoline pump nozzles.

According to the new regulations, San Francisco stations will be required to place labels with the following text on every nozzle: "The U.S. Environmental Protection Agency (EPA) has determined that a typical passenger vehicle burning one gallon of fuel produces on average almost 20 pounds of tailpipe carbon dioxide (CO2), which the EPA has determined is the primary greenhouse gas that is contributing to recent climate change. This is a message from the city and county of San Francisco."

Service stations which do not comply with the regulation face fines of $100 to $500.

San Francisco legislators said they passed the new requirements to make sure consumers were aware their behavior was causing climate change.

The new "climate change warning labels" will be mandated as of March 2015.

CHS TO INCREASE DIESEL PRODUCTION IN MONTANA

ST. PAUL, MN. — CHS Inc. has announced plans to invest $406 million in its Laurel, Montana refinery to "boost efficiency and increase diesel production."

The upgrades to the facility are slated to begin this Fall and be completed in 2019. They will include hydrocracker modifications to increase diesel production and allow the refinery to process a variety of different crude oils.

"These projects, along with all of our ongoing major refining, distribution and storage investments, underscore our continued commitment to building the CHS energy platform," said Jay Debertin, CHS chief operating officer of Energy and Foods. "We are dedicated to providing long-term dependable supplies of quality refined fuels products that help our owners and rural customers grow."

Debertin added that when all current Montana and Kansas refinery projects are complete, total CHS refining capacity will increase from 120,000 barrels per day to an approximately 160,000 barrels per day.

LOVE'S TO OFFER CNG IN NEW MEXICO, ARIZONA

OKLAHOMA CITY, OK. — Love's Travel Stops has announced that it will add CNG fueling options to its facilities in Albuquerque, NM., and Williams, AZ. Both sites are located on the I-40 corridor.

The travel stops will offer CNG fueling for passenger vehicles as well as fast-fill CNG capabilities for heavy-duty trucks. According to the company, the fast-fill equipment will deliver the alternative fuel at a rate of greater than 10 gallons per minute.

"With our growing fast-fill CNG network, Love's will be able to offer customers convenient accessibility from Oklahoma City to the West Coast," said Bill Cashmareck, general manager of natural gas at Love's. "Love's in-lane CNG will be a reliable and cost-effective full-service solution for motorists and fleets who want to use their existing fueling cards and also need diesel for their refrigerated trailers."

Originally published in the December 2014 issue of O&A Marketing News.
Copyright 2014 by KAL Publications Inc.