Kinder Morgan & Magellan Expanding Eagle Ford System to Move Anadarko Crude & Condensate

Double Eagle Pipeline Eagle Ford System Map
Double Eagle Pipeline Eagle Ford System Map

Double Eagle Pipeline, a partnership between Kinder Morgan and Magellan Midstream, is expanding to move more crude and condensate to the Houston Ship Channel.

Double Eagle Pipeline has signed an agreement with Anadarko Petroleum to extend its pipeline system and connect with the KMCC Pipeline to move crude to the Houston Ship Channel.

Also read: Kinder Morgan Expanding Its Eagle Ford Crude & Condensate Pipeline Into Karnes County

Double Eagle is expected to spend approximately $45 million to add 160,000 bbls of storage and add a pump state at Gardendale, as well as build 10 miles of pipeline connecting the system to the KMCC System in Karnes County.

We are pleased that customer demand on the Double Eagle system is continuing to grow,” said Michael Mears, Magellan’s chief executive officer. “The increased connectivity for the Double Eagle system is in direct response to our customers’ desire to more efficiently supply additional condensate barrels to the Houston Ship Channel.
Kinder Morgan's KMCC and Double Eagle System Map
Kinder Morgan's KMCC and Double Eagle System Map

To service the Double Eagle addition, Kinder Morgan plans to add 240,000 bbls of storage at the KMCC's Helena Station.

Through Kinder Morgan's KMCC Pipeline oil moves to delivery points in the Houston Ship Channel or the Phillips 66 Sweeney Refinery in Brazoria County, TX.

The KMCC pipeline system has capacity of 300,000 b/d and has been in operation since mid-2012.

Read more: Kinder Morgan Expanding Into Gonzales County

About Double Eagle Pipeline

The Double Eagle Pipeline includes 140 miles of 12-inch pipeline connecting to an existing 50-mile, 14- and 16-inch pipeline segment owned by Kinder Morgan extending from Three Rivers, Texas, to Magellan’s marine and storage terminal in Corpus Christi, Texas. The  capacity of the pipeline is 100,000 barrels per day, but can be expanded with additional pumps.

Read more at kindermorgan.com

Double Eagle Pipeline Moving Eagle Ford Condensate to Corpus Christi

Double Eagle Pipeline - Eagle Ford Condensate System
Double Eagle Pipeline - Eagle Ford Condensate System

Double Eagle Pipeline, LLC, a joint venture between Kinder Morgan and Magellan Midstream, has started moving condensate to Corpus Christi.

The pipeline is part of a project that was started by Copano and Magellan, but is operated by Kinder Morgan who purchased Copano earlier in 2013.

Condensate is moving from a truck unloading facility in Three Rivers to Magellan's Corpus Christi Terminal. From the Corpus Terminal, condensate can reach local petrochemical plants, as well as water borne export options.

This leg is just a portion of what is a $150 million project that includes 140 miles of 12-inch pipelines. The system connects with other Kinder Morgan pipelines in the area as well.

The next leg of the pipeline from Gardendale (near Cotulla) to Three Rivers is expected to be online in the third quarter of 2013. Initial capacity is planned at 100,000 b/d, but the system can be expanded to handle 150,000 b/d.

The pipeline was supported by long-term commitments from Talisman and Statoil.

Copano Energy Eagle Ford Shale Update - May 2012

Copano Energy Eagle Ford Midstream Map
Copano Energy Eagle Ford Midstream Map

Copano Energy provided an update on its Eagle Ford operations in May. Highlights include:

  • Copano is investing $1 billion in organic projects
  • Has committed volumes of ~1 Bcf/d with 10 year terms from producers
  • Houston Central (200 mmcfd)cryogenic plant is performing better than expected
  • Lean oil plant at Houston Central realizing lower recoveries than expected
  • New 400 mmcfd cryogenic plant at Houston Central will improve margins further Q1 2013. Another 400 mmcfd expansion coming in 2014
  • High NGL content in the Eagle Ford creates short-term constraints, but long-term opportunity

Other growth projects and notes

  • DK Pipeline extension will reach into McMullen County by Q2 2013 ($120 million)
  • Double Eagle Condensate Pipeline JV - Copano will spend $100 million on the 140 mile condensate gathering system. Building system in partnership with Magellan Midstream (100,000 b/d of capacity planned)

Find the full presentation at copanoenergy.com