Kinder Morgan Energy Partners (KMP) has launched an open season seeking binding contracts from shippers to carry light condensate from Kankakee County in Illinois, US, to existing terminal facilities near Fort Saskatchewan in Alberta, Canada, as part of its Cochin Reversal Project.
The company is looking for interested customers to commit to a minimum contract of ten years and 5000 barrels a year of volume.
The open season will close on 31 May 2012.
Kinder Morgan is modifying the western leg of its 1,900-mile multiproduct Cochin pipeline, connecting it to the Explorer Pipeline Company in Kankakee County, in a bid to reverse the product flow and move the condensate northwest to Fort Saskatchewan.
Don Lindley, KMP Products Pipeline group vice president of business development, said this open season was prompted by significant, tangible interest expressed in the proposed reversal.
"Our proposal will provide the rapidly growing Canadian market with very cost-effective access to light condensate from both the Eagle Ford Shale and the US Gulf Coast," added Lindley.
Upon the successful completion of the open season, the project will handle nearly 75,000 barrels a day light condensate capacity, beginning July 2014 when shipments are scheduled to commence.
The Cochin pipeline is a common carrier pipeline system moving refined petroleum products, feedstock and diluents from the Gulf Coast throughout the Midwest.
The 12-inch pipeline covers three provinces in Canada and seven states in the US and now transports propane and ethane-propane mix to Midwestern America and Eastern Canada.