Kinder Morgan Crude & Condensate Pipeline Expanding Into Gonzales County – $74 Million

Kinder Now Expanding KMCC Into Karnes County and Gonzales County
Kinder Morgan Crude & Condensate Expansion into Karnes County

Kinder Morgan Crude & Condensate Expansion into Karnes County | Click to Enlarge

Kinder Morgan announced another expansion in the Eagle Ford. The company will spend $74 million to expand the Kinder Morgan Crude & Condensate (KMCC) pipeline 18 miles from the DeWitt Station into Gonzales County.

The latest expansion isn’t included on the map, but it will extend north from the point near Cuero, TX.

The 24-inch pipeline will have capacity of 300,000 b/d. The expansion will connect with a new facility in Gonzales County that will have 300,000 bbls of storage, a pump station, and truck offloading facilities.

Kinder Morgan Expanding Eagle Ford System Into Karnes County

The oil will move through the Kinder Morgan system to delivery points in the Houston Ship Channel or the Phillips 66 Sweeney Refinery in Brazoria County, TX.

“We are pleased to enter this long-term arrangement to move more Eagle Ford Shale product to the Houston Ship Channel and surrounding areas and once again provide much needed optionality to Eagle Ford producers and Houston market consumers,” said Don Lindley, president, Natural Gas Liquids Business Development for KMP.

The expansion is supported by commitment from a major Eagle Ford operator. My first thought is it is probably EOG Resources (comment below if you agree or not). There are other operators in the area, but none come to mind that could make a commitment large enough to support development of a 300,000 b/d pipeline.

Not counting what has already been invested, Kinder Morgan has a total of $900 million in planned investments in the Eagle Ford.

Read the full press release 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

Comments

  1. WALLACE DICKEY says:

    WHO CAN TELL ME THE LAND BROKER FOR KINDER-MORGAN THAT WILL BE STAFFING THIS PL, OR WILL KM HIRE THEIR OWN ROW AGENTS?
    THANKS

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