KMEP begins Parkway products pipeline construction

Kinder Morgan Energy Partners (KMEP) has begun building its 136-mile, 16-in. OD Parkway Pipeline.

KMEP is building the 110,000-b/d pipeline to transport gasoline, jet fuel, and diesel from refineries in Norco, La., to an existing petroleum transportation hub in Collins, Miss., owned by Plantation Pipe Line Co., for further shipment to markets in the southeastern US. KMEP owns 51% of Plantation and operates the system.

KMEP is partnering with Valero Energy Corp. in the joint venture that will own Parkway Pipeline LLC. The pipeline, supported by a long-term throughput agreement, will be expandable to more than 200,000 b/d. Pending environmental and regulatory approvals, KMEP expects the roughly $220 million pipeline project to be in service mid-2013.

Construction of Parkway will follow existing utility rights-of-way wherever possible.

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

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