Kinder Morgan starts up new crude, condensate pipeline in Texas
Kinder Morgan Energy Partners LP announced that its Kinder Morgan crude/condensate (KMCC) pipeline is in service and available to transport volumes to the Houston Ship Channel.
The approximately $215 million (MM) pipeline, which was completed on time and under budget, is supported by long-term contractual commitments and has a capacity of 300,000 bpd.
KMCC, which is comprised of 65 miles of newbuild construction and 113 miles of converted natural gas pipeline, originates in the Eagle Ford Shale and delivers crude and condensate to multiple terminaling facilities that provide access to local refineries, petrochemical plants and docks on the Texas Gulf Coast.
Including joint ventures and other projects, Kinder Morgan's planned investments related to the Eagle Ford Shale now total more than $800 MM.
In addition to its connectivity to third-party terminaling facilities, KMCC will tie into Kinder Morgan's planned petroleum condensate processing facility, which will be located near the company's Galena Park terminal on the Houston Ship Channel.
This approximately $200 MM terminal will have an initial throughput capacity of 50,000 bpd, is being supported by a fee-based contract with a major oil customer, and can be expanded up to 100,000 bpd.
The project is in the final design phase and is expected to be in service by the first quarter of 2014.
Kinder Morgan's other Eagle Ford assets include:
Eagle Ford Gathering LLC—a joint venture with Copano Energy LLC that provides natural gas gathering, transportation, processing and fractionation services to various customers
EagleHawk Field Services LLC—a joint venture between Kinder Morgan Energy Partners (25%) and a subsidiary of BHP Billiton (75%) which owns, operates and is actively developing natural gas and condensate gathering facilities
Camino Real Gathering System—a unit providing gas and oil gathering for producers.
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