February 15, 2013 [OPIS] - The startup of Kinder Morgan's new condensates splitter plant at its Galena Park terminal in Galveston, Texas, has been delayed to April 2014 from its original startup timing of January 2014 because of delays in obtaining federal and state permits for the project, a company spokeswoman said.
Due to the permitting delays, construction of the project has yet to begin, the spokeswoman said late Wednesday.
The 100,000-b/d condensate splitter will be constructed as two 50,000-b/d trains in two phases, according to documents submitted to regulators.
Construction of the second 50,000-b/d train will start within 18 months of completion of the first 50,000-b/d train, Kinder Morgan told regulators.
According to a Kinder Morgan investor presentation on Jan. 30, some $200 million has been budgeted for the initial project which will include the processing unit as well as 1.2 million barrels of new tankage, all to be located at Kinder Morgan’s Galena Park terminal.
Kinder Morgan also indicated in that presentation that BP signed a 10-year contract for use of 42,000 b/d of the capacity on the condensate splitter.
Phase 2 of this project would cost some $150-$170 million, it also said. Kinder Morgan is in the midst of talks to commit volumes from that phase and expects to conclude negotiations by the first quarter of 2013.
The project will also include 10 internal floating roof storage tanks, seven fixed roof storage tanks and seven pressurized storage tanks.
