Kinder Morgan to expand Sweeny Lateral pipeline to Phillips 66 refinery


Kinder Morgan Energy Partners has agreed to expand its Sweeny Lateral pipeline to Phillips 66's Sweeny refinery in Brazoria County, Texas.

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

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