Press release from Business Wire
Kinder Morgan Energy Partners to Expand Capacity on Sweeny Lateral Pipeline
Thursday, May 02, 2013
Kinder Morgan Energy Partners to Expand Capacity on Sweeny Lateral Pipeline09:30 EDT Thursday, May 02, 2013
HOUSTON (Business Wire) -- Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced it has entered into a long-term contract to support the expansion of its Sweeny Lateral pipeline that the company is building from the Kinder Morgan Crude Condensate (KMCC) pipeline to Phillip 66's Sweeny Refinery in Brazoria County, Texas. The expansion will increase the capacity on the 27-mile, 12-inch diameter lateral pipeline from an initial 30,000 barrels per day (bpd) to 100,000 bpd. Kinder Morgan will add new pumps and an additional 120,000-barrel storage tank at its Wharton Pump Station in Wharton County, Texas, and increase the truck offload capabilities at its DeWitt Station in DeWitt, County, Texas, to facilitate the increase in capacity.
“We are pleased to provide Phillips 66 with a flexible option to move more crude and condensate out of the Eagle Ford shale to their refinery in Sweeny,” said KMP Products Pipelines President Ron McClain. “This expansion further demonstrates the strategic importance of KMCC and its role in transporting Eagle Ford product to markets on the Texas Gulf Coast.” The project is expected to be immediately accretive to cash available to KMP unitholders upon completion at the end of 2013.
Kinder Morgan's crude/condensate pipeline, which went into service in June 2012, transports crude/condensate from the Eagle Ford shale to the Houston Ship Channel through 65 miles of new-build construction and 113 miles of converted natural gas pipeline.
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company and one of the largest publicly traded pipeline limited partnerships in America. It owns an interest in or operates approximately 51,000 miles of pipelines and 180 terminals. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Kinder Morgan is the largest midstream and the third largest energy company in North America with a combined enterprise value of approximately $120 billion. It owns an interest in or operates approximately 80,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMI owns the general partner interests of KMP and El Paso Pipeline Partners, L.P. (NYSE: EPB), along with limited partner interests in KMP, Kinder Morgan Management, LLC (NYSE: KMR) and EPB. For more information please visit www.kindermorgan.com.
This news release includes forward-looking statements. Although Kinder Morgan believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are enumerated in Kinder Morgan's Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.
Kinder Morgan Energy Partners, L.P.
Emily Mir, 713-369-8060