KM announces successful open season for Palmetto Project

Kinder Morgan Energy Partners, L.P. has announced that it has successfully closed a binding open season for the Palmetto Project and received committed volumes from shippers sufficient to support the project. The Palmetto Project will provide shippers a new refined products pipeline service to move gasoline, diesel and ethanol from Louisiana, Mississippi and South Carolina to points in South Carolina, Georgia and Florida. The open season closed on 30^th October.

“We are pleased that we received sufficient shipper commitments to proceed with the project, and we will be notifying shippers of awarded capacity in November,” said Ron McClain, president of Products Pipelines for KMP. “Contract terms will range from five to 10 years per shipper, and the project remains on track for an in-service date of July 2017, pending regulatory approvals.”

As previously announced, the approximately US$ 1 billion Palmetto Project would provide pipeline shippers looking to move refined petroleum products from the Gulf Coast with access to new markets in the Southeast. The project has a design capacity of 167 000 bpd and would consist of a segment of expansion capacity on the Plantation pipeline that Palmetto would lease from Plantation Pipe Line Company between Baton Rouge, Louisiana, and Belton, South Carolina. A new 360 mile pipeline from Belton, South Carolina, to Jacksonville, Florida, would also be constructed as part of the project. KMP owns approximately 51% of Plantation.

Aapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/project-news/03112014/km-announces-successful-open-season-for-palmetto-project/