Eagle Ford Condensate Processing Expansion – Houston – Kinder Morgan

Eagle Ford condensate processing is set to expand by 25,000 b/d with the announcement of a new Kinder Morgan processing facility in Galena Park, TX. The plant will be positioned well to reach Gulf Coast industrial markets and the Houston Ship Channel.

The $130 million facility will split condensate into its components: light and heavy napthas, kerosene, and gas oil. The plant will also have the capability to expand to 100,000 b/d.

“The location of our new facility, when combined with our recently announced $220 million crude/condensate pipeline, will provide customers with unparalleled connectivity to crude oil and clean products markets including refineries, chemical companies, gasoline blenders, finished product storage, outbound pipelines and marine facilities on the Texas Gulf Coast,” said KMP Products Pipelines President Tom Bannigan. The transaction is expected to be immediately accretive to cash distributable to KMP unitholders upon the project’s completion in January 2014.

The pipeline, which will transport crude/condensate from the Eagle Ford Shale in south Texas to the Houston Ship Channel, will consist of almost 70 miles of new-build construction and 113 miles of converted natural gas pipeline. Construction on the pipeline began this week and Kinder Morgan expects it to be in service in the second quarter of 2012.

Read more at KinderMorgan.com

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R.T. Dukes

R.T. Dukes

Managing Editor at EagleFordShale.com
R.T. is the managing editor of EagleFordShale.com. In prior roles, he advised major oil companies on strategy, the macro business environment, and opportunity screening. 2503 Robinhood, Houston, TX, 77005, U.S.A. | Telephone: 832.429.4790

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