BP – Kinder Morgan Sign Long-term Eagle Ford Processing Agreement

Kinder Morgan Galena Park Terminal Photo

Kinder Morgan’s Galena Park Terminal | Click to Enlarge

Kinder Morgan announced on July 19, 2012, the company will provide long-term condensate processing services and storage at terminals located in the Houston Ship Channel. BP will lease 750,000 barrels of storage and has committed 40,000 barrels per day of condensate that will be split into its light and heavy napthas, as well as kerosene and gas oil.

To accommodate, Kinder Morgan will spend $75 million to add storage at its Galena Park Terminal. Five tanks that connect to the condensate facility, new pipes and pumps will will be part of the expansion. [Read more…]

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. [Read more…]

Magellan Midstream Expands Houston Ship Channel Pipeline – Eagle Ford Crude

Magellan Midstream plans to expand a Houston area pipeline to expand the company’s Eagle Ford crude pipeline capacity. The six mile pipeline will help increase delivery of crude,  being brought into the area from South Texas, into Houston and Texas City refineries.

Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that it is further expanding its crude oil pipeline distribution capabilities in the Houston area to deliver domestic crude oil and condensate transported via third-party pipeline systems from the Eagle Ford Shale production area directly to local refineries. The project includes the construction of a 6-mile, 24-inch diameter crude oil pipeline between the pipeline interchanges of Genoa Junction and Speed Junction, which will connect to the 24-inch diameter crude oil pipeline along the Houston Ship Channel that was previously announced as part of the partnership’s Houston-to-El Paso pipeline reversal project, allowing Magellan to further distribute product to the Houston-area refineries. [Read more…]

Eagle Ford Barges Taking Crude to Houston – New Orleans – Port Arthur

Barges are being utilized to move Eagle Ford crude oil to refining markets in Houston, New Orleans, and Port Arthur. Kirby Corp, a company that operates inland barges, said yesterday that as many as 140 barges across the U.S. are being used for crude oil. (That’s in all areas and not just the Eagle Ford). The 140 represents a ten-fold increase from a decade ago.

Moving oil on barges had become an almost non-existant business until plays like the Eagle Ford began producing oil in areas without spare pipeline capacity. Without pipelines, you begin looking for the next best thing. Utilization rates for trucks, tanks, and barges are at modern day highs. [Read more…]

Enterprise to Significantly Expand Eagle Ford Shale Capabilities with New Construction Projects

Enterprise Products plans to build over 350 miles of pipe, while adding additional processing capacity in the Houston Ship Channel to help service the Eagle Ford Shale.  Enterprise will soon be able to process 1.5 bcf per day of gas across its processing facilities in South Texas.

“Enterprise Products Partners L.P. (NYSE:EPD) today announced several new construction projects that will further extend and expand its natural gas and natural gas liquids (NGL) infrastructure in South Texas and Mont Belvieu, Texas to accommodate growing production volumes from the Eagle Ford Shale play. As part of the initiative, Enterprise plans to install 350 miles of pipelines, build a new natural gas processing facility, and add a new NGL fractionator at the Mont Belvieu complex near the Houston Ship Channel. In addition, the partnership recently completed several key, previously announced projects, including the initial 34-mile segment of the east-west rich gas Eagle Ford mainline and the final leg of the 62-mile White Kitchen Lateral. As a result, Enterprise soon will be able to fill the existing 1.5 billion cubic feet per day (Bcf/d) of capacity at its seven South Texas natural gas processing facilities.”

Read the full press release at epplp.com

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