SAN ANTONIO — A joint venture of Kinder Morgan Energy Partners LP and Magellan Midstream Partners LP has entered into a long-term agreement to move Eagle Ford Shale liquids for Anadarko Petroleum Corp.
Kinder Morgan Crude and Condensate LLC and Double Eagle Pipeline LLC, a 50-50 joint venture between Magellan Midstream Partners LP and Kinder Morgan Energy Partners, recently announced that they will move production from Gardendale in La Salle County to the Houston Ship Channel along the KMCC Pipeline.
Double Eagle will build 160,000 barrels of storage capacity and a pump station in Gardendale, as well as a 10-mile pipeline to connect the Double Eagle and the KMCC Pipeline in Karnes County. KMCC will construct 240,000 barrels of storage.
Kinder Morgan is investing about $45 million.
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Double Eagle and KMCC expect to finish construction in early 2015.
“We believe connecting the Double Eagle and KMCC systems will offer unique flexibility for Anadarko and other Eagle Ford producers to access both the Corpus Christi and Houston-area markets,” said Don Lindley, president of natural gas liquids for Kinder Morgan Energy Partners, in a press release.
The Double Eagle Pipeline’s initial capacity of the pipeline is 100,000 barrels per day, but can be expanded.
It includes about 140 miles of new 12-inch pipeline connecting to an existing 50-mile, 14- and 16-inch pipeline segment owned by Kinder Morgan from Three Rivers to Magellan’s terminal in Corpus Christi.