USA: Kinder Morgan Expands Eagle Ford Shale Footprint

Kinder Morgan Energy Partners announced it has entered into an agreement with a large Eagle Ford Shale producer to extend the Kinder Morgan Crude and Condensate (KMCC) pipeline farther into the Eagle Ford Shale in South Texas. KMP will invest approximately $74 million to build an 18-mile, 24-inch diameter lateral pipeline northwest from its DeWitt Station to a new facility in Gonzales County, where KMP will construct 300,000 barrels of storage, a pipeline pump station and truck offloading facilities.

The lateral will have a capacity of 300,000 barrels per day and will enable Kinder Morgan to batch Eagle Ford crude and condensate from the new Gonzales Station via KMCC to its delivery points on the Houston Ship Channel and/or the soon to be completed Sweeny Lateral pipeline serving the Phillips 66 Sweeny Refinery in Brazoria County, Texas. Including joint ventures and other projects, KMP’s planned investments related to Eagle Ford Shale crude and condensates currently total almost $900 million.

“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,” said Don Lindley, president, Natural Gas Liquids Business Development for KMP.

The project is expected to be immediately accretive to cash available to KMP unitholders upon completion in early 2015.

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LNG World News Staff, October 11, 2013; Image: Kinder Morgan