Kinder Morgan will invest $90 million in project
BY ALISON SIDER
HOUSTON--Kinder Morgan said thursday it has agreed to extend a pipeline to deliver oil from the Eagle Ford shale in south Texas to Phillips 66's Sweeny Refinery near that state's Gulf Coast. Kinder Morgan will invest $90 million in the project, which includes building the 27 mile lateral to a pipeline that brings crude from the Eagle Ford to the Houston Shipping channel.
A significant portion of the lateral pipeline's 30,000 bpd capacity will be devoted to Phillips 66 when it comes online in the first quarter of 2014. The refinery is located south of Houston. The financial terms of the agreement were not disclosed.
The extension comes as energy companies redraw pipeline routes to bring booming oil production from the United States interior to where refineries can take full advantage of the relatively inexpensive crude. The Gulf Coast has the nation's largest concentration of refineries.
Phillips 66 is the former refining arm of ConocoPhillips and became a stand-alone company last year. Kinder Morgan is the largest United States midstream company. Both are based in Houston.
Dow Jones Newswires