Alliance Energy Services signed an agreement to acquire a propane terminal from Kinder Morgan Energy Partners LP for approximately $5 million. The terminal in Benson, Minnesota, supplies more than 75 million gallons (gal) per year via delivery from the Cochin Pipeline System and has a storage capacity of approximately 1.4 million gal.

Kinder Morgan will cease receiving propane into Cochin in spring 2014 to prepare for the in-service of the company’s Cochin Reversal Project, which involves modifying the western leg of its pipeline to move light condensate northwest from Kankakee County, Illinois, to terminal facilities near Fort Saskatchewan, Alberta.

Propane deliveries to the terminal are expected to continue until May 2014. Alliance Energy will build out the terminal to accept propane via rail and expects to begin rail operations by June 2014.