Kinder Morgan plans $130 million processing facility

Houston-based Kinder Morgan said today it plans to build a petroleum condensate processing facility near an existing terminal in the Houston Ship Channel.

The pipeline company said the new facility will cost $130 million, and it is expected to process about 25,000 barrels-per-day from the Eagle Ford shale, which could be later expanded to accommodate 100,000 barrels-per-day. The facility is expected to be completed by January 2014, the company said.

“The location of our new facility…will provide customers with unparalleled connectivity to crude oil and clean products markets including refineries, chemical companies, gasoline blenders, finished product storage, outbound pipelines and marine facilities on the Texas Gulf Coast,” said KMP Products Pipelines President Tom Bannigan.

The processing facility plans to produce light and heavy naphthas, kerosene and gas oil. The construction is being underwritten by a major oil industry customer, who was not identified in the company release.

Kinder Morgan recently announced a $220 million crude oil pipeline that would connect the Eagle Ford shale play with the Houston Ship Channel. The new pipeline would add 70 miles of newly built pipeline and 113 miles of existing pipeline, the company said.

The pipeline is expected to be in service in the second quarter of 2012.

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