KMP to expand KMCC pipeline in Texas

US-based Kinder Morgan Energy Partners (KMP) has signed an agreement with a producer to expand the Kinder Morgan Crude and Condensate (KMCC) pipeline further into the Eagle Ford shale in South Texas, US.

KMP plans to invest approximately $74m to construct an 18-mile, 24in diameter lateral pipeline northwest from its DeWitt station to a new facility in Gonzales county.

The company will also build 300,000 barrels of storage, a pipeline pump station and truck offloading facilities.

The pipeline will have the capacity to transport 300,000 barrels per day, which will allow Kinder Morgan to supply Eagle Ford crude and condensate from the new Gonzales Station through KMCC to its delivery points on the Houston Ship Channel.

KMP, along with its joint ventures, has currently invested approximately $900m to develop Eagle Ford shale crude and condensates.

KMP natural gas liquids business development president Don Lindley said: "We are pleased to enter this long-term arrangement to move more Eagle Ford Shale product to the Houston Ship Channel and surrounding areas and once again provide much needed optionality to Eagle Ford producers and Houston market consumers."

The project is expected to be complete in early 2015.

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Image: Kinder Morgan to extend the KMCC pipeline in Eagle Ford shale in South Texas. Photo: courtesy of Magnus Manske.