Kinder Morgan to carry Eagle Ford crude

Aug. 24, 2012 at 6:45 AM
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HOUSTON, Aug. 24 (UPI) -- Pipeline company Kinder Morgan announced it reached a deal with Phillips 66 to pipe oil from the Eagle Ford play to a Texas refinery.

Kinder Morgan said it plans to build a 27-mile, 12-inch diameter pipeline to the Sweeny refinery along the southeast Texas coast for Phillips 66. Kinder said it would provide the bulk of the initial 30,000 barrels of oil per day for a pipeline that can handle 100,000 bpd.

The pipeline company said the project will represent a $90 million investment. The construction phase would start during the fourth quarter of the year provided the company gets environmental and regulatory consent.

This week, Plains All American Pipeline and Enterprise Products Partners announced the joint venture would oversee a 140-mile crude oil and condensate pipeline and a new 35-mile pipeline for the Eagle Ford play.

The companies said parts of the new system are under construction. It has a target capacity of 350,000 bpd and includes a terminal facility for 1.8 million barrels of storage.

Production from the Eagle Ford play last year topped 30 million barrels.

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