Kinder Morgan Energy Partners entered into a definitive agreement to acquire American Petroleum Tankers (APT) and State Class Tankers (SCT) from affiliates of The Blackstone Group and Cerberus Capital Management for USD 962M in cash. APT and SCT are engaged in the marine transportation of crude oil, condensate and refined products in the United States domestic trade, commonly referred to as the Jones Act trade.
APT’s fleet consists of five medium-range Jones Act-qualified product tankers, each with 330,000 barrels of cargo capacity. Each of
APT’s vessels operates under long-term time charters with major integrated oil companies, major refiners and the U.S. Navy. SCT has commissioned the construction of four medium-range Jones Act-qualified product tankers, each with 330,000 barrels of cargo capacity. The vessels are scheduled to be delivered in 2015 and 2016 and are being constructed by General Dynamics’ NASSCO shipyard. Upon delivery, the SCT vessels will operate under long-term time charters with a major integrated oil company. Kinder Morgan will invest approximately USD 214M to complete the construction of the SCT vessels.
APT’s vessels operates under long-term time charters with major integrated oil companies, major refiners and the U.S. Navy. SCT has commissioned the construction of four medium-range Jones Act-qualified product tankers, each with 330,000 barrels of cargo capacity. The vessels are scheduled to be delivered in 2015 and 2016 and are being constructed by General Dynamics’ NASSCO shipyard. Upon delivery, the SCT vessels will operate under long-term time charters with a major integrated oil company. Kinder Morgan will invest approximately USD 214M to complete the construction of the SCT vessels.
The transaction is expected to close in the first quarter of 2014.