By DEBBIE CAI
Kinder Morgan Energy Partners has agreed to expand its
Sweeny Lateral pipeline to Phillips 66's Sweeny refinery in Brazoria County,
The expansion will increase the capacity
on the 27-mile pipeline to 100,000 bpd from an initial 30,000
bpd. KMP will add new pumps and an additional 120,000-bbl
storage tank at its Wharton Pump Station in Wharton County,
Texas, and increase the truck unloading capabilities at its
DeWitt Station in DeWitt, County, Texas, to facilitate the
increase in capacity.
KMP Products Pipelines president Ron McClain said the expansion provides Phillips 66 with
a flexible option to move more crude and condensate out of the
Eagle Ford shale to its refinery in Sweeny.
The project is expected to immediately
add to cash available to KMP unitholders upon completion at the
end of this year.
The Sweeny Lateral pipeline is being built from Kinder
Morgan's crude condensate pipeline that transports crude
condensate from the Eagle Ford shale to the Houston Ship
Channel through 65 miles of new-build construction and 113 miles of
converted natural gas pipeline.
On Wednesday, Phillips 66 posted first-quarter earnings that
soared amid stronger margins at its refining and chemicals businesses
that helped to offset lower revenue.
Dow Jones Newswires