HOUSTON, Oct. 10 (UPI) -- Pipeline company Kinder Morgan said it would invest $74 million to extend a pipeline to carry more oil from the Eagle Ford shale play in southern Texas.
Kinder said it reached a deal with an undisclosed producer in the Eagle Ford region to extend a pipeline by 18 miles to feed a new facility it plans to build to store 300,000 barrels of oil.
The company said the project would enable it to get crude oil to new delivery points in southern Texas.
"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, a president for business development at Kinder, said in a statement Wednesday.
The U.S. Energy Information Administration estimates Eagle Ford may hold as much as 10 billion barrels of oil, making Texas one of the leading oil-producing states in the union.
The company said its combined interests in the Eagle Ford shale play represent a $900 million investment. Kinder said the project should be completed in early 2015.