Kinder Morgan Expanding Its Eagle Ford Crude & Condensate Pipeline Into Karnes

Kinder Morgan Crude & Condensate Expansion into Karnes County

Kinder Morgan is expanding its 300,000 b/d Eagle Ford crude & condensate pipeline (KMCC) 31 miles into Karnes County.

The expansion will extend the 178-mile pipeline from the DeWitt Station in DeWitt County, TX, to a Centeral Delivery Facility operated by ConocoPhillips near Helena in Karnes County.

Kinder Morgan will also build receipt tanks and a truck unloading facility. Construction will begin in July.

KMP Products Pipelines President Ron McClain stated “This expansion further assists our commitment to deliver up to 300,000 barrels per day of crude and condensate from the Eagle Ford Shale.”

The development is supported by long-term commitments from ConocoPhillips.

Reference the article Kinder Morgan Plans Second Condensate Facility at Galena Park for more details on the company's condensate processing facilities.

High Point Infrastructure Building Eagle Ford Gathering - Gonzales

High Point Infrastructure Partners has reached an agreement to build gathering and processing infrastructure in Gonzales County, TX. The company has reached a long-term fee-based agreement with a large operator in the area.

“We are excited to announce a long-term agreement to develop critical midstream infrastructure for a significant producer in the Eagle Ford Shale.”

— Steve Bergstrom, Chairman.

Construction will begin in mid-2013 and the facilities will be operational in early 2014. When completed, the pipelines and gathering facility will have capacity of 95,000 barrels of oil per day and 15 mmcfd of natural gas.

Watch for High Point to leverage this development into other midstream projects in the area.

High Point is the General Partner of American Midstream Partners. You can read the full press release at americanmidstream.com

La Salle County Refinery Planned Near Gardendale

Gardendale Rail Map

Worldwide Energy Consortium is planning a refinery in La Salle County near Gardendale. Significant volumes of oil pass through the Gardendale Rail system and through Plains All American Pipeline's gathering system.

The Whitetail Refinery will be built to take advantage of growing Eagle Ford production in the area. The refinery is in the permitting and engineering phase, but the company expects it will be operational by the fourth quarter of 2014. That's fast moving for a refinery.

“The rapid deployment of modern, cost efficient refining operations directly into the new production regions will positively impact the producers, consumers, and the investors in our projects.”

— Dave Martinelli, CEO Worldwide Energy Consortium, Inc.

Read the full press release at worldecorp.com

The Eagle Ford Is Making Winners Out of Many - Video

The Eagle Ford is making winners out of several companies. Aimee Duffy, from Motley Fool, notes three companies with even more growth ahead. EOG plans to drill more this year than initially planned and both Enterprise Product Partners and Kinder Morgan will benefit from growing production.

SM Energy Expects Eagle Ford Condensate Discount - Interruptible Gathering

SM Energy Operated Eagle Ford Acreage Map

SM Energy expects its Eagle Ford condensate production will realize a long-term average discount of $7-8 to NYMEX prices. Oil production in the region averaged price realizations of 101% and 103% of WTI in the fourth quarter of 2012 and first quarter of 2013, respectively.

SM Energy's operated Eagle Ford production grew 15% over the fourth quarter to 51,800 boe/d. That represents 74% growth over the first quarter of 2012. The company's non-operated position (Anadarko operated) grew 3% in the quarter to an average of 16,000 net boe/d.

SM Energy's Eagle Ford Gathering Will Be Interruptible

The company's operated production has regularly exceeded 300 mmcfd in March and April of 2013. Firm transportation agreements are currently in place for 300 mmcfd and the company is confident there is adequate gathering infrastructure in place. Additional firm capacity will be online mid-year 2013 and the company believes current infrastructure will allow for growth in the interim.

SM ran five drilling rigs in the quarter and completed 28 wells. Anadarko ran nine rigs.

Expanding East Texas Woodbine & Eagle Ford Acreage

The company now has approximately 150,000 net acres prospective for the Woodbine and Eagle Ford in Walker, San Jacinto, Polk, and Washington counties. Watch for well test results in the second half of the year.

Read the full press release at sm-energy.com