Kinder Morgan Energy Partners (KMP) says it has secured long-term commitments for more than two-thirds of the 300,000 b/d capacity on its Kinder Morgan Crude and Condensate (KMCC) pipeline. The pipeline connects Eagle Ford crude and condensate to the Houston Ship Channel.
Read more: Kinder Morgan and Magellan Expanding Eagle Ford System to Move Anadarko Crude & Condensate
In January 2014, Kinder Morgan Crude and Condensate LLC and Double Eagle Pipeline LLC (a 50/50 joint venture between KMP and Magellan Midstream Partners) signed an agreement with Anadarko Petroleum to move its' Eagle Ford production to the Houston Ship Channel. Also in January, the company put its' ~$100 million Sweeny lateral into service. This lateral connects KMCC to the Phillips 66 Sweeny refinery south of Houston.
KMP is investing nearly $300-million in additional supply laterals, connections, tanks and truck racks, supported by long-term contracts with customers. The company intends for these projects to enhance the connectivity of the KMCC system to additional Eagle Ford supplies and the Texas Gulf Coast market outlets. Portions of these facilities have been put into service to meet customer demand.
All-together, company officials say Kinder Morgan's investments related to Eagle Ford crude and condensate opportunities currently total $1-billion. Projects in the works are expected to be online over the course of 2014 and the first half of 2015.
Read more at kindermorgan.com