Publicly traded Kirby ticker symbol (KEX), who just bought Higman last month for $419 million, is back at it again buying 16 pressure barges for $69.3 million in cash from Targa. Inland is booming right now, which always scares me because I know the bust side can be just as bad. I see no risk of this, I just get scared when they start gettting carried away.
69.3 million/ 16 barges = $4.3 million/ pressure barge, about 1/3 more expensive than a NEW 30,000 barrel petroleum barge. Unless some other assests were bought that weren’t disclosed, that’s my calculation. I am super bullish on LNG, all power plants that are being bulit in the country now, at least in my region are LNG. Most of the boom in LNG is USA exporting overseas, I was wondering if/when this would pick up inland. Maybe this is a start?
BTW, I realize pressure barges are not just LNG, just curious if anyone on the forum had any insight/comments on LNG.
I went to an MAN B&W talk last week. They were bragging about their engines for new-build Jones Act duel fuel ships for the West Coast-Hawaii trade. I reckon there will be bunker barges on both ends of that route.
“In 2015 coal was used to produce 33% of the electricity in the United States” – Energy and Civilization, I never finished this book but came across it because it was one of 5 bill gates recommended books for 2017. My opinion, coal gets used way less going forward for power and LNG takes its place. Don’t mean to take away from the first article about Kirby buying Targa and how inland is hiring at ALL positions right now.