Will Koch Restart Pipeline?

Koch Considers Restarting Pipeline
Koch Considers Restarting Pipeline

Eagle Ford Midstream company considers a restart of existing pipeline system.

Related: Natural Gas Will be a Boom for Eagle Ford Companies

Koch Pipeline Company, L.P. (KPL) announced last week that it is evaluating whether it might restart an existing crude oil pipeline system in the northeastern section of the Eagle Ford Shale. The potential restart would start in 2016 an would include pipeline, storage and truck unloading stations in Burleson and Lee counties in Texas.

As a company we are always exploring ways to provide value for our customers. We are excited about the opportunity to possibly restart this pipeline to provide enhanced transportation alternatives to Eaglebine producers.
— Koch President, Steve Kromer

 

Koch operates about 540 miles of pipeline in South Texas and is one of the largest pipeline transporters of South Texas crude. Last year, the company restarted a 56-mile section of this system in Bastrop County, which included storage and a truck unloading facility.

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Eagle Ford Shale

 Pipeline and Midstream Companies

In its latest,

Short Term Energy Outlook

, the Energy Information Administration (EIA) reported that in 2017, natural gas exports will surpass imports for the first time since 1955. With hundreds of miles of natural gas pipelines heading from the Eagle Ford and Permian Basin to the Gulf Coast, the liquefied natural gas industry is poised to deliver the majority of those exports.

With the current forecast for natural gas, the San Antonio Biz Journal recently highlighted five Eagle Ford companies that are positioned to take advantage of these markets in 2016.

  1. Howard Energy Partners: With acreage in Webb County, Howard plans to build a 200-mile pipeline to deliver 600 million cubic feet of natural gas per day to Mexico
  2. Lewis Energy: A top producer with positions inLa Salle, Webb and Dimmit Counties.
  3. Energy Transfer Partners: ETP already has natural gas export capabilities in Webb County and the Rio Grande Valley.
  4. Sanchez Energy: With tens of thousands of acres in the natural gas-rich lands of La Salle, Dimmit and Webb Counties, Sanchez entered a joint venture worth$115 million to bridge connections to Mexico.
  5. Flint Hills Resources: Has petitioned the federal government to ship LNG oversees.