Kinder Morgan and Valero Energy have formed a joint venture to build and operate a new 219 km, 16 inch diameter pipeline to transport gasoline, jet fuel and diesel to south eastern United States.
The Parkway Pipeline will extend from refineries in Norco, Louisiana, to an existing petroleum transportation hub in Collins, Mississippi. This hub is owned by Plantation Pipe Line Company, which is 51 per cent owned and operated by Kinder Morgan. From this hub the refined petroleum products will be transported by pipeline systems – including the approximately 4,989 km Plantation pipeline system – that serve major markets in south eastern US.
The pipeline will have an initial capacity of 110,000 bbl/d with the ability to expand to over 200,000 bbl/d. Pending receipt of environmental and regulatory approvals, the approximate $US220 million pipeline project is expected to be in service by mid-2013.
Kinder Morgan Products Pipelines President Tom Bannigan said “This project will enhance fuel supply and optionality for sourcing refined products into south eastern markets currently served by pipeline systems such as Plantation Pipe Line Company.”
Kinder Morgan said that construction of the Parkway Pipeline will follow existing utility rights-of-way wherever possible to minimise environmental impacts.