Kinder Morgan Secures Enough Commitments for Eagle Ford KMCC Pipeline

April 22, 2014 Kirk Eggleston

Kinder Morgan's KMCC and Double Eagle System Map

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.

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.

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

January 3, 2014 R.T. Dukes

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.”

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.

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.

Kinder Morgan Crude & Condensate Pipeline Expanding Into Gonzales County - $74 Million

October 10, 2013 R.T. Dukes

Kinder Morgan Crude & Condensate Expansion into Karnes County

Kinder Morgan announced another expansion in the Eagle Ford. The company will spend $74 million to expand the Kinder Morgan Crude & Condensate (KMCC) pipeline 18 miles from the DeWitt Station into Gonzales County.

The latest expansion isn't included on the map, but it will extend north from the point near Cuero, TX.

The 24-inch pipeline will have capacity of 300,000 b/d. The expansion will connect with a new facility in Gonzales County that will have 300,000 bbls of storage, a pump station, and truck offloading facilities.

Kinder Morgan Expanding Eagle Ford System Into Karnes County

The oil will move through the Kinder Morgan system to delivery points in the Houston Ship Channel or the Phillips 66 Sweeney Refinery in Brazoria County, TX.

“We are pleased to enter this long-term arrangement to move more Eagle Ford Shale product to the Houston Ship Channel and surrounding areas and once again provide much needed optionality to Eagle Ford producers and Houston market consumers.”

— Don Lindley, president, Natural Gas Liquids Business Development for KMP.

The expansion is supported by commitment from a major Eagle Ford operator. My first thought is it is probably EOG Resources (comment below if you agree or not). There are other operators in the area, but none come to mind that could make a commitment large enough to support development of a 300,000 b/d pipeline.

Not counting what has already been invested, Kinder Morgan has a total of $900 million in planned investments in the Eagle Ford.

Read the full press release at KinderMorgan.com

Natural Gas Header Complete - Eagle Ford Gas Ready To Flow

June 6, 2013 R.T. Dukes

Tres Palacios Pipeline Header and Storage

Inergy, LP has completed a 20-mile, 24-inch pipeline header extension that will allow natural gas to flow from Kinder Morgan's Houston Central gas processing plant in Colorado County to the Tres Palacios storage hub in Matagorda County.

The Tres Palacios Header crosses ten interstate & intrastate pipelines and connects the Tres Palacios storage hub to the Houston Central processing plant.

Tres Palacios gas storage facility is located in Matagorda County, TX, and includes 38.4 bcf/d of working gas storage capacity
Houston Central plant has capacity to process 700 mmcfd of gas and fractionation capacity of 22,000 b/d. The plant is being expanded to process an additional 400-800 mmcfd of rich gas from the Eagle Ford. The facility was formerly known as the Copano Houston Central Plant

“Beyond providing Eagle Ford Shale producers with significant new market options, we believe our new Houston Central interconnection will increase liquidity at the Tres Palacios hub point for marketers to access supply.”

— Bruce Page, VP

This is one of several midstream developments that will enhance the value of natural gas and NGLs being produced in the Eagle Ford.

Double Eagle Pipeline Moving Eagle Ford Condensate to Corpus Christi

June 5, 2013 R.T. Dukes

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.