Kinder Morgan to expand KMCC pipeline in US

Kinder Morgan Energy Partners (KMP) has unveiled plans to invest about $54m in the construction of an interconnect and other facilities for its Kinder Morgan crude and condensate (KMCC) pipeline in the US.

The company has signed a long-term transportation agreement with Republic Midstream Marketing, which will build a gathering pipeline from Lavaca County, Texas, to the new interconnection at KMP’s DeWitt Station near Cuero.

As wellas from the interconnection, KMP will also construct two storage tanks with 120,000 barrels of capacity each, truck offloading racks and related facilities.

The expansion project is expected to start operations in June 2015.

KMP president of natural gas liquids Don Lindley said: "We are pleased to enter into this agreement with Republic, as it gives KMCC access to additional Eagle Ford production areas in Gonzales and Lavaca counties.

"We have now secured long-term commitments for more than 75% of the 300,000 barrels per day of capacity on KMCC.

"Including joint ventures and other projects, KMP’s planned investments related to Eagle Ford crude and condensate opportunities currently total approximately $1 billion, all of which are supported by long-term customer contracts."

KMCC includes 65 miles of new-build construction and 113 miles of converted natural gas pipeline.

It originates in the Eagle Ford Shale and delivers crude and condensate to several terminaling facilities that offer access to local refineries, petrochemical facilities and docks on the Texas Gulf Coast.

The $215m pipeline, which started operations June 2012, has a capacity of 300,000 bpd.