Under the agreement, Kinder Morgan Partners (KMP) plans to build an approximately 43 km, 12 inch diameter lateral pipeline to extend its Kinder Morgan Crude Condensate (KMCC) pipeline. Kinder Morgan will provide Phillips 66 with a significant portion of the lateral pipeline’s initial 30,000 bbl/d of capacity, which is expandable to 100,000 bbl/d.
KMP will invest approximately $US90 million in the project, which also involves adding associated receipt facilities by constructing a five-bay truck offloading facility and three new storage tanks with approximately 360,000 barrels of crude/condensate capacity at Kinder Morgan’s DeWitt Station in DeWitt County, Texas, and Wharton Pump Station in Wharton County, Texas. Pending receipt of environmental and regulatory approvals, construction is scheduled to begin in the fourth quarter of 2012.
Kinder Morgan’s crude/condensate pipeline, which was ready for service in June 2012, transports crude/condensate from the Eagle Ford shale to the Houston Ship Channel through approximately 105 km of new-build construction and approximately 182 km of converted natural gas pipeline.