Galena Park Terminal — Eagle Ford Shale News

Kinder Morgan CEO, Rich Kinder, discusses growth potential at his companies. The company is now looking at new pipelines and Kinder was one of the first to expand its crude by rail capability. Kinder Morgan now has five crude to rail facilities and one of the larger terminals on the Houston Ship Channel (Galena Park).

Kinder says "I've never sold a share" because of the growth opportunity. Kinder Morgan has over $12 billion in expansion projects and has an open season for an oil pipeline to California. Kinder will convert a natural gas pipeline to oil and move oil from the Permian Basin to California. It's a $2 billion project that could initially move 250,000 b/d and could be expanded. The project reads well for the Eagle Ford as it will alleviate supply pressure in the Gulf Coast markets as well.

Kinder Morgan Galena Park Terminal Photo

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.

While the agreement was described as long-term, the actual length of the contract was not released. You can read the full press release at KinderMorgan.com and can read more at our BP Eagle Ford Shale page.