Koch proposes Eagle Ford crude oil pipeline

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Nov. 16 -- Koch Pipeline Co. LP proposed a new 16-in. OD pipeline to connect Eagle Ford shale crude oil producers in the Karnes County, Tex., area to Corpus Christi. The line will have an initial capacity of 120,000 b/d with expansion possible to more than 200,000 b/d.

The company expects to complete the project, which will include pump and truck receipt stations and tanks, in fourth-quarter 2012. A new station, likely near Helena, Tex., will connect into Koch Pipeline’s existing crude system in Pettus, Tex., and Refugio, Tex.

Koch Pipeline expects corporate approval for the expansion to its South Texas crude oil system by year end. Koch Pipeline has already completed or is in the process of completing several projects that will add more than 140,000 b/d to the system by end-2011, all moving more Texas crude to Corpus Christi, the company said. Transported crude would be run at sister-company Flint Hills Resources’ Corpus Christi refinery and marketed from its Ingleside waterborne terminal.

The company said it will next evaluate a large-diameter trunk line to connect Pettus infrastructure and continue into western Eagle Ford counties of Live Oak, McMullen, LaSalle, and Dimmit. In August, in conjunction with Arrowhead Pipeline LP, Koch Pipeline announced an agreement and joint tariff to add 50,000 b/d of crude and condensate capacity during 2011 from the western counties of the Eagle Ford trend.

Koch Pipeline is already building a line to expand delivery capability to Flint Hills Resources’ Ingleside waterborne terminal. In addition, Koch Pipeline leased 30,000 bbl of capacity from NuStar Logistics on a line from Pettus to Corpus Christi (OGJ Online, Oct. 19, 2010).

Contact Christopher E. Smith at chriss@ogjonline.com.

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