By MELODIE WARNER
Kinder Morgan plans to spend about $107 million to extend
its Kinder Morgan Crude & Condensate pipeline system deeper
into the Eagle Ford Shale play in Karnes County, Texas.
Kinder Morgan said it intends to extend the 178-mile
pipeline 31 miles from the KMCC DeWitt Station in DeWitt
County, Texas, to ConocoPhillips's central delivery facility
near Helena in Karnes County.
The expansion is supported by a long
term contract with ConocoPhillips, and Kinder Morgan Energy
expects to begin construction in July.
Kinder Morgan Energy said it canceled plans for the $2
billion Freedom oil pipeline, a conduit that would have brought
direct stream of West Texas crude to refiners on the West
Coast. The cancellation underscores the growing difficulty
pipeline companies are having in selling new large-scale projects, as oil producers and
refiners increasingly rely on railroads to ship crude oil.
The company said at the time it would switch its focus to
crude by rail projects in Texas and
Kinder Morgan Energy's general partner is owned by Kinder
Morgan Inc., one of the largest United States energy firms.
Dow Jones Newswires