Kinder Morgan Energy Partners is tacking on 18 miles of lateral pipeline in the Eagle Ford Shale to carry crude and condensate from its DeWitt County, Texas station to a new facility it will build northwest in Gonzales County.
The company’s $74 million pipeline addition would allow it to reach markets along the Houston Ship Channel and a pipeline that services a Phillips 66 refinery in Brazoria County.
Kinder Morgan said Wednesday it struck a deal with a large producer in the Eagle Ford to extend the 178-mile pipeline in the South Texas shale play, but did not disclose the company.
The expansion provides “much needed optionality to Eagle Ford producers and Houston market consumers,” said Don Lindley, Kinder Morgan’s president for natural gas liquids business development, in a written statement.
The new pipeline will be able to transport 300,000 barrels of oil equivalent per day to the new station in Gonzalez County, which will have 300,000 barrels of storage capacity, a pipeline pump station and truck offloading facilities.
It’s a drop in the bucket for the Houston pipeline operator, which currently plans to invest $900 million in Eagle Ford projects and joint ventures. Kinder Morgan’s general partner, Kinder Morgan Inc., owns the largest pipeline network in North America at 80,000 miles, according to data compiled by Bloomberg.
In June, the company said it would expand another pipeline 31 miles from the DeWitt Station to a ConocoPhillips facility in Karnes County. That investment would amount to $107 million, Kinder Morgan had said.