TEPPCO Expanding Inland Waterway Distribution Network With Construction of Three New Terminals
TEPPCO Partners, L.P. (NYSE:TPP) today reported that it will construct three new refined product terminals along the Tennessee and Cumberland rivers that will supply markets in western Tennessee. Clarksville and Clifton, Tennessee will be home to two of the terminals with a third facility to be located at a site which has yet to be determined. Combined, the three new terminals are expected to have 800,000 barrels of storage capacity for gasoline, diesel and biofuels, and offer improved trucking logistics with supply provided by barge transportation. The initiative is expected to cost approximately $75 million and is projected to be completed during the first quarter of 2010.
“The addition of these new terminals represents the continued successful implementation of our strategy to develop a network of refined products distribution facilities along inland waterways in the southeastern United States,” said Jerry E. Thompson, president and chief executive officer for the general partner of TEPPCO. “Beginning with the purchase of our 130,000 barrel terminal in Aberdeen, Mississippi and continuing with construction of the partnership’s 500,000 barrel terminal in Boligee, Alabama, these facilities are well positioned to better serve the local markets.”
Thompson added, “This project also complements our recently established Marine Services business, which is expected to provide barge transportation services to customers of these new terminals from our Boligee facility. In addition to the two tank barges and one tow boat TEPPCO Marine currently uses to supply these markets, four additional tank barges and two new tow boats are slated to serve the new terminals when complete. The terminals offer an additional growth opportunity for TEPPCO to provide more tow boats and tank barges as demand for volumes through the terminals increases. The Boligee terminal, which is expected to be in service this summer, features an interconnect with the Colonial Pipeline system and will be the primary origination point for products that will be delivered to the new terminals.”
TEPPCO Partners, L.P. is a publicly traded partnership with an enterprise value of approximately $5.8 billion, which conducts business through various subsidiary operating companies. TEPPCO owns and operates one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States; owns and operates petrochemical and natural gas liquid pipelines; is engaged in transportation, storage, gathering and marketing of crude oil; owns and operates natural gas gathering systems; owns and operates a marine transportation business for refined products, crude oil, condensate, asphalt, heavy fuel oil and other heated oil products; and has ownership interests in Jonah Gas Gathering Company, Seaway Crude Pipeline Company, Centennial Pipeline LLC, and an undivided ownership interest in the Basin Pipeline. Texas Eastern Products Pipeline Company, LLC, the general partner of TEPPCO Partners, L.P., is owned by Enterprise GP Holdings L.P. (NYSE:EPE), which also owns the general partner of Enterprise Products Partners L.P. (NYSE:EPD). For more information, visit TEPPCO’s Web site at www.teppco.com.
This news release includes forward-looking statements. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties, such as the partnership’s expectations regarding future results, increases in distributable cash or expenditures. These risks and uncertainties include, among other things, insufficient cash from operations, market conditions, governmental regulations and factors discussed in TEPPCO Partners, L.P.’s filings with the Securities and Exchange Commission. If any of these risks or uncertainties materializes, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. The partnership disclaims any intention or obligation to update publicly or reverse such statements, whether as a result of new information, future events or otherwise.