KMEP, BP execute processing agreement for splitter, storage

Kinder Morgan Energy Partners LP and BP North America have signed agreements to provide BP condensate processing and storage at KMEP’s terminals on the Houston Ship Channel, the firms jointly reported.

BP has committed more than 40,000 b/d of throughput for KMEP’s 50,000-b/d condensate splitter, currently under construction, that will produce such components as light and heavy naphthas, kerosene, and gas oil.

The $200 million splitter has been designed to provide expansions up to 100,000 b/d throughput. BP also will lease an additional 750,000 bbl of storage that KMEP will add at its Galena Park, Tex., terminal.

The expansion is part of KMEP’s $75 million investment to build five tanks that will connect to its splitter with piping, manifolds, and pumps. The company expects the splitter and storage tanks to be operating in first-quarter 2014.

Contact Warren R. True at warrent@ogjonline.com.

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