Kinder Morgan Energy to expand Eagle Ford shale pipeline

6/3/2013

Kinder Morgan Energy to expand Eagle Ford shale pipeline


BY MELODIE WARNER
 
HOUSTON -- Kinder Morgan Energy Partners plans to spend about $107 million to extend its Kinder Morgan Crude & Condensate pipeline system deeper into the Eagle Ford shale play in Karnes County, Texas.

The pipeline transportation and energy storage company said it intends to extend the 178-mi pipeline 31 mi from the KMCC DeWitt Station in DeWitt County, Texas, to ConocoPhillips's central delivery facility near Helena in Karnes County.

The expansion is supported by a long-term contract with ConocoPhillips, and Kinder Morgan Energy expects to begin construction in July.

Kinder Morgan Energy said Friday it canceled plans for the $2 billion Freedom oil pipeline, a conduit that would have brought a direct stream of West Texas crude to refiners on the west coast. The cancellation underscores the growing difficulty pipeline companies are having in selling new large-scale projects, as oil producers and refiners increasingly rely on railroads to ship crude oil.

The company said at the time it would switch its focus to crude-by-rail projects in Texas and California.

Dow Jones Newswires

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