Kinder Morgan Energy Partners LP (KMEP) has entered into a long-term transportation agreement with Republic Midstream Marketing LLC to build an interconnect and other facilities for the Kinder Morgan Crude & Condensate (KMCC) pipeline.
Plans call for Republic to build a gathering pipeline from Lavaca County, Tex., to the new interconnection at KMEP’s DeWitt Station, near Cuero, Tex. KMEP will build two storage tanks with 120,000 bbl of capacity each, truck offloading racks, and related facilities.
KMEP says the agreement gives KMCC access to additional Eagle Ford production areas in Gonzales and Lavaca counties.
The company in October reported plans to invest $74 million to build an 18-mile, 24-in. lateral pipeline northwest from its DeWitt station to a new facility in Gonzales County, Tex., along with 300,000 bbl of storage, a pipeline pump station, and truck offloading facilities (OGJ Online, Oct. 9, 2013).
“We have now secured long-term commitments for more than 75% of the 300,000 b/d of capacity on KMCC,” said Don Lindley, KMEP president of natural gas liquids. “Including joint ventures and other projects, [KMEP’s] planned investments related to Eagle Ford crude and condensate opportunities currently total $1 billion, all of which are supported by long-term customer contracts.”
KMEP will invest $54 million in the project, which is slated to come online in June 2015.