By OGJ editors
HOUSTON, Oct. 20 -- Kinder Morgan Energy Partners LP plans to invest $388 million to further expand the 550-mile CALNEV pipeline, which transports gasoline, diesel, and jet fuel from California to Nevada.
The proposed expansion, involving construction of a 16-in. pipeline from Colton, Calif., to Las Vegas, Nev., will increase the system's capacity to 200,000 b/d. The company said a further capacity increase to more than 300,000 b/d is possible with the addition of pump stations.
The new pipeline will parallel existing utility corridors between Colton and Las Vegas to minimize environmental impacts. It will transport gasoline, diesel, and jet fuel for the military at Nellis Air Force Base.
Subsequently, the existing 14-in. line will be dedicated to commercial jet fuel service for McCarran International Airport and any future commercial airports planned in Las Vegas and the 8-in. pipeline that currently serves the airport would be purged and held for future service.
Construction of the 16-in. line is expected to be completed in 9 months, following environmental permitting and right-of-way acquisition, expected to take 24-30 months.
Pending Federal Energy Regulatory Commission approvals, startup of the line is scheduled for late 2009 or early 2010.
This major expansion project is in addition to three capital upgrades on the CALNEV system, announced earlier this year. Two of these projects, when completed, will increase the line's capacity to 156,000 b/d. The third involves construction of additional tanks that will increase gasoline and diesel storage at Las Vegas by 26% and 20%, respectively. The expansion projects combined are valued at $413 million.
Tom Bannigan, president of KMP's products pipelines group, said the company is also gauging customer interest in construction of a new refined products distribution terminal south of Henderson, Nev.