Kinder Morgan and Double Eagle connect Gardendale to Texas coast

Kinder Morgan and Double Eagle connect Gardendale to Texas coast
January 09, 2014 | posted by The Institute


By: Sanford Nowlin

Pipeline giant Kinder Morgan Energy Partners and affiliates have inked a deal with Anadarko Petroleum Corp. to carry Eagle Ford Shale crude to the Texas Coast.

Anadarko’s long-term deal is with Kinder Morgan Crude and Condensate (KMCC) LLC and Double Eagle Pipeline LLC, a 50-50 venture between Magellan Midstream Partners LP and Kinder Morgan Energy Partners.

Double Eagle will build a 160,000-barrel storage facility and a pump station near the LaSalle County town of Gardendale. It also will add a 10-mile pipeline connecting to its own pipeline and to the KMCC Pipeline in Karnes County.

For its part, KMCC will build 240,000 barrels of storage capacity at its Helena Station so it can whisk crude from the Double Eagle Pipeline to its own delivery points.

“We believe connecting the Double Eagle and KMCC systems will offer unique flexibility for Anadarko and other Eagle Ford producers to access both the Corpus Christi and Houston-area markets,” says Don Lindley, president of natural gas liquids for Kinder Morgan.

Energy companies drilling in the Eagle Ford have faced the challenge of getting oil and gas from the vast shale play to the Texas Coast, a key shipping and refining hub. Anadarko is one of the largest Eagle Ford producers.

Kinder Morgan will invest $45 million in the project. Double Eagle didn’t reveal the size of its investment.

The companies expect to complete their facilities in early 2015.