KMEP to build, operate Parkway products pipeline

Kinder Morgan Energy Partners LP will build and operate a 136-mile, 16-in. OD products pipeline—Parkway Pipeline—that will extend from refineries in Norco, La., to an existing petroleum transportation hub in Collins, Miss., owned by the Kinder Morgan-operated Plantation Pipe Line Co. From the Collins hub, products will be transported to the US Southeast.

KMEP is partnering for Parkway with Valero Energy Corp. The pipeline will have an initial capacity of 110,000 b/d with the ability to expand to more than 200,000 b/d. The project is underpinned with a completed long-term throughput agreement. Pending receipt of environmental and regulatory approvals KMEP expects the line to enter service by midyear 2013.

KMEP says construction of the roughly $220 million pipeline project will follow existing utility rights-of-way wherever possible.

KMEP launched an open season earlier this week on its Pony Express crude oil pipeline project to move DJ basin crude to storage in Cushing, Okla. (OGJ Online, Sept. 12, 2011).

Contact Christopher E. Smith at chriss@ogjonline.com.

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