American Petroleum Tankers sees flood of domestic and Canadian crude

NASSCO built five product carriers for American Petroleum Tankers, including Empire State, shown here during "float out" day for the hull in September 2009.  APT was then mostly owned by the investment firm Blackstone Group.

To capitalize on a flood of domestic and Canadian crude into the U.S. Gulf Coast, logistics giant Kinder Morgan Energy Partners recently acquired U.S.-flagged tankers that can move crude and products between domestic ports as required under the Jones Act.   They acquired American Petroleum Tankers (APT) and State Class Tankers (SCT) from affiliates of The Blackstone Group and Cerberus Capital Management for an aggregate consideration of approximately $962 million in cash. APT and SCT are engaged in the marine transportation of crude oil, condensate and refined products in the U.S. domestic trade, commonly referred to as the Jones Act trade.    American Petroleum Tankers already has five medium range product tankers in operation, each with a 330,000 barrel cargo capacity. In addition a new Jones Act qualified tanker is being commissioned for construction,  and State Class Tankers has ordered four other medium range tankers with expected delivery dates in 2015 and 2016 and the same cargo capacity of 330,000 barrels.   
 General Dynamics NASSCO, a wholly owned subsidiary of General Dynamics (NYSE: GD), has entered into a contract with an affiliate of American Petroleum Tankers (APT), a wholly owned subsidiary of Kinder Morgan Energy Partners, L.P. (NYSE: KMP), for the design and construction of an additional 50,000 deadweight ton LNG-conversion-ready product carrier with a 330,000 barrel cargo capacity. Construction is scheduled to begin the fourth quarter of 2015, with delivery scheduled for the second quarter of 2017. This new tanker, supported by a long-term charter, will be constructed at the NASSCO shipyard in San Diego, meeting the Jones Act requirement that ships carrying cargo between U.S. ports be built in U.S. shipyards.
American Petroleum Tankers LLC
State Class Tankers II LLC
State Class Tankers III LLC
State Class Tankers IV LLC
State Class Tankers V LLC
State Class Tankers VI LLC
American Petroleum Tankers Holding LLC
APT New Intermediate Holdco LLC
American Petroleum Tankers Parent LLC
APT Intermediate Holdco LLC