Kinder Morgan Energy Partners has entered into a long-term,
fee-based agreement with BP to underwrite an additional 50,000
bpd of throughput capacity at the petroleum condensate
processing facility Kinder Morgan is constructing near its
Galena Park terminal on the Houston Ship Channel, the companies
said on Thursday.
With the new agreement, Kinder Morgan will invest an additional
$170 million to add a second unit to its previously announced
$200 million condensate processing facility, thereby raising
the facilitys total capacity to 100,000 bpd.
The investment also includes the company building an additional
700,000 bbl of storage capacity for product being split at the
We are pleased to secure long-term contracts for all
of the throughput capacity at our facility, and provide BP with
the processing needed for Eagle Ford Shale production and other
condensates, said Ron McClain, president of Kinder
Morgan's products and pipelines business.
Combined with our recently completed Kinder Morgan Crude
Condensate (KMCC) pipeline, we are able to provide unparalleled
connectivity to crude oil and clean products markets on the
Texas Gulf Coast," he added.
The new project is expected to be completed
in the second quarter of 2015.
Kinder Morgans processing facility will split
condensate into its various components, such as light and heavy
naphtha, kerosene, diesel and gas oil, and can be further
expanded pending additional market interest, according to the
Kinder Morgan announced the first phase of its processing
facility when it secured the initial commitment of 25,000 bpd
of capacity. The company expects to place the first unit in
service in the first quarter of 2014.
BP is proud to build upon our strategic partnership with
Kinder Morgan through an increased footprint in Galena Park,"
said Paul Reed, CEO of BPs integrated supply and
"We believe that by accessing this additional throughput
capacity, we will be better placed to provide US producers a
full suite of services including access to the best homes for
their crude and condensates. It will also enable BP to service
our customers better and more efficiently manage their feedstock and product needs."
KMCC is an approximately 180-mile pipeline that transports
crude and condensate from the Eagle Ford Shale in South Texas
to the Houston Ship Channel.