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Company accepting nominations to move product from Eagle Ford Shale to Texas Gulf.
Kinder Morgan Energy Partners, L.P. (KMP) announced its Kinder Morgan crude/condensate pipeline (KMCC) is in service and available to transport volumes to the Houston Ship Channel. The approximately $215 million pipeline is supported by long-term contractual commitments and has a capacity of 300,000 bpd. The pipeline, which is comprised of 65 miles of new-build construction and 113 miles of converted natural gas pipeline, originates in the Eagle Ford Shale and delivers crude/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, KMP's planned investments related to the Eagle Ford Shale now total more than $800 million.
"We are pleased to offer Eagle Ford producers safe, reliable and efficient pipeline service to the Texas Gulf Coast," said KMP Products Pipeline President Tom Bannigan. The project was completed on time and under budget and will be immediately accretive to cash available to KMP unitholders.
In addition to its connectivity to third-party terminaling facilities, KMCC will tie into Kinder Morgan's planned petroleum condensate processing facility to be located near the company's Galena Park terminal on the Houston Ship Channel. This approximately $200 million facility 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 percent) and a subsidiary of BHP Billiton (75 percent) which owns, operates and is actively developing natural gas and condensate gathering facilities.
· Camino Real Gathering System - provides gas and oil gathering for producers.
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