January 2012, Vol. 239 No. 1

In The News

Kinder Morgan Investing $130 Million In New Condensate Processing Plant

Kinder Morgan Energy Partners, L.P. will build, own and operate a petroleum condensate processing facility near its Galena Park terminal on the Houston Ship Channel.

With initial throughput of 25,000 bpd and a design that provides for future expansions of up to 100,000 bpd, the $130 million project will split condensate into its various components such as light and heavy naphthas, kerosene and gas oil. A major oil industry customer is underwriting, through a fee structure, the initial throughput of the facility.

“The location of our new facility, when combined with our recently announced $220 million crude/condensate pipeline, will provide customers with unparalleled connectivity to crude oil and clean products markets including refineries, chemical companies, gasoline blenders, finished product storage, outbound pipelines and marine facilities on the Texas Gulf Coast,” said KMP Products Pipelines President Tom Bannigan. Project completion is expected in January 2014.

The pipeline, which will transport crude/condensate from the Eagle Ford Shale in South Texas to the Houston Ship Channel, will consist of almost 70 miles of new-build construction and 113 miles of converted natural gas pipeline. Construction on the pipeline began last month and Kinder Morgan expects it to be in service in the second quarter.