Koch Expands its Eagle Ford Crude Oil Pipeline System

Pipeline Photo
Pipeline Photo

In May of 2014, Koch Pipeline Company announced it will expand its Eagle Ford crude oil pipeline system. The installation includes an additional 24-mile, 16-inch pipeline in San Patricio County, which is located near the Texas Gulf Coast, next to Corpus Christi, TX. Company officials say the new pipeline will have an expected initial capacity of approximately 200,000 b/d.

We are seeing additional opportunities with the Eagle Ford shale play and this new pipeline will help us move domestic crude to the U.S. market more efficiently by using a combination of new and existing pipeline infrastructure,” said Bob O’Hair, EVP of Koch Pipeline. “South Texas is an important area for Koch Pipeline and we’ll continue to invest in it to ensure we have a system that meets the shippers’ needs in terms of capacity and reliability.

In 2012, the company completed a 20-inch crude oil pipeline between Pettus, TX in Bee County and Corpus Christi, TX. The installation at its onset transported approximately 250,000 b/d of Karnes County area Eagle Ford production.

Read more: Koch Eagle Ford Shale Pipeline Going Forward

Koch's Proposed Bakken Shale Pipeline Cancelled

Koch, which has both Northern and Southern operations, recently attempted to gain a foothold in another major play, but was unsuccessful. In January of 2014, the company withdrew its proposal to build a 250,000 b/d crude oil pipeline in the Bakken Shale, in North Dakota, after not being able to secure enough commitments. The cancellation of this pipeline was surprising because more than 500,000 b/d currently moves out of the Bakken area  by rail.

Read more: Koch Cancels Proposed Bakken Pipeline - "Dakota Express Pipeline"

The company currently operates a 304-mile pipeline owned by Minnesota Pipe Line Company, LLC that delivers Canadian and Rockies crude oil, including Bakken, from Clearbrook, Minn., to refineries in the Twin Cities. In Texas, Koch operates about 540 miles of active crude oil transportation lines. The new Eagle Ford crude oil pipeline expansion is expected to come online in the second quarter of 2014.

Read more at kochpipeline.com