Koch Expands its Eagle Ford Crude Oil Pipeline System

May 21, 2014 Kirk Eggleston

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.

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.

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.

NuStar Energy - Koch Move Eagle Ford Shale Crude

July 20, 2011 Kenny DuBose

Eagle Ford Shale crude oil can be moved by truck, but pipelines are much more efficient. NuStar and Koch can now move 30,000 barrels per day of crude from Pettus, TX in Bee County to Corpus Christi. The pipeline is the latest of many to help alleviate crude oil transportation issues in South Texas

"It takes a day for 30,000 barrels of crude oil to flow 60 miles through a 10-inch-diameter pipeline.""That's the amount of Eagle Ford Shale crude oil that has been pulsing from Pettus, in Bee County, to Corpus Christi since the line's valves opened on June 21."

"It would require more than 150 tanker trucks — with all the costs for fuel, drivers and other overhead — to do the same job, NuStar Energy spokesman Greg Matula said."
"The company is looking into rejuvenating other unused lines, which it has throughout the region, and hooking them into its growing distribution network, Matula said."
"NuStar's and Koch's partnership boosts regional carrying capacity for shipping Eagle Ford Shale oil from interior South Texas to Corpus Christi."
" 'This project is part of a larger strategy to create even greater logistical options for our customers in the Eagle Ford region,' said Curt Anastasio, president and CEO of NuStar, in a news release. 'The Pettus South pipeline complements Koch's expanded pipeline system in South Texas so it's a win-win for both our companies.' "

Koch Eagle Ford Shale Pipeline Going Forward

June 28, 2011 Kenny DuBose

Koch Pipeline going forward with expansion that can potentially add 250,000 barrels per day of capacity from the Karnes County area to Corpus Christi.

“ 'With this line, Koch Pipeline ultimately will have the capability to move 250,000 barrels-per-day of Eagle Ford production from the Karnes County area to the Corpus Christi-area,' said Kim Penner, KochPipeline president."

"With this new pipeline, and the other investments Koch Pipeline has made in terminals, lines and leaseagreements with other companies, the company will have increased transportation capability into Corpus Christi and Ingleside to more than 350,000 barrels per day."

Read the full press release at kochind.com