Kinder Morgan to expand KMCC oil pipeline

Kinder Morgan Energy Partners L.P. (KMEP) has signed an agreement with a large Eagle Ford shale producer to extend the Kinder Morgan crude and condensate (KMCC) pipeline further into the Eagle Ford Shale, South Texas.

The 18 mile pipeline extension will be built northwest from its DeWitt Station to a new facility in Gonzales County, Texas, where KMO will construct 300 000 barrels of storage, a pipeline pump station and truck offloading facilities. The lateral pipeline will enable Kinder Morgan to batch Eagle Ford crude oil and condensate from the new Gonzales Station.

The project, which is set to cost US$ 74 million with completion expected by early 2015, will bring Kinder Morgan’s planned investments in the Eagle Ford to US$ 900 million, including its joint ventures.

Don Lindley, Natural Gas Liquids Business Development for KMEP, said that the arrangement brings optionality to Eagle Ford producers and Houston market consumers.

“We are pleased to enter this long-term arrangement to move more Eagle Ford Shale product to the Houston Ship Channel and surrounding areas and once again provide much needed optionality to Eagle Ford producers and Houston market consumers,” Lindley said.

Kinder Morgan crude and condensate pipeline

The US$ 215 million KMCC is comprised of 178 m of pipeline. It originates in the Eagle Ford Shale and delivers crude/condensate to multiple terminaling facilities that provide access to local refineries, petrochemical plants and docks on the Texas Gulf Coast. The pipeline, which went into service in June 2012, is supported by contractual commitments and has a capacity of 300 00 bpd.

Edited from various sources by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/10102013/kinder_morgan_to_expand_kmcc_pipeline/