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TransMontaigne Partners L.P. has announced the sale of its 50 percent interest in the Battleground Oil Specialty Terminal Company LLC (BOSTCO) project to a subsidiary of Kinder Morgan Energy Partners, L.P.

TransMontaigne received a cash consideration equal to its investment plus a transferrable option to buy 50 percent of Kinder Morgan's interest at any time prior to January 20, 2013.

The BOSTCO project intends to design and develop a new, approximately $430 million, oil terminal located on the Houston Ship Channel. The initial phase of the project currently includes construction of 52 storage tanks that will have a capacity of 6.6 million barrels for handling residual fuel, feedstocks, distillates and other black oils.

Terminaling services agreements and/or letters of intent are said to have been executed with customers for almost all of the capacity. The project will include one of the deepest vessel drafts in the Houston Ship Channel and be well positioned to participate in the growing trend of exporting petroleum related products overseas.

Commenting on the decision to sell its BOSTCO stake, TransMontaigne said: "As previously announced, we sold a 50 percent interest in the BOSTCO project to Kinder Morgan on October 18, 2011. As previously disclosed, Morgan Stanley, which indirectly controls our general partner, informed us in October 2011 that it would not, for the foreseeable future, approve our continued participation in the BOSTCO project at such time as the Phase I construction is commenced. It was as a result of this development that we decided to sell our remaining 50 percent interest in the BOSTCO project to Kinder Morgan. At this time we are unable to predict whether we will exercise the purchase option."