July 20, 2012 [OPIS] - Kinder Morgan Energy Partners LP and BP North America said on Thursday that both companies have executed a long-term commercial agreements to provide BP condensate processing services and storage at Kinder Morgan's terminals located on the Houston Ship Channel.
BP has committed over 40,000 b/d of throughput at Kinder Morgan’s petroleum condensate facility which will split condensate into various components such as light and heavy naphthas, kerosene and gasoil.
The approximately $200 million facility has been designed to provide future processing expansions up to 100,000 b/d throughput.
BP also will lease an additional 750,000 bbl of storage that Kinder Morgan will add at its Galena Park terminal.
The expansion is part of Kinder Morgan’s approximately $75 million investment to construct five new tanks that will connect to its condensate facility with new piping, manifolds and pumps.
Kinder Morgan expects the new storage tanks and condensate facility to be in service in the first quarter of 2014.
“We are pleased to enter into these contracts with BP, which reflect continued strong demand to bring Eagle Ford Shale production to the Gulf Coast,” said Tom Bannigan, president of Kinder Morgan’s Products Pipelines.
“Our splitter facility combined with our Eagle Ford to Houston crude/condensate pipeline and associated Houston Ship Channel storage facilities offer customers like BP unparalleled connectivity to the full range of Gulf Coast markets including refineries, chemical companies, gasoline blenders, outbound pipelines and marine facilities,” he said.
