HOUSTON, April 17 Kinder Morgan Energy Partners
may further expand an already expanded condensate
splitter planned at its Galena Park terminal along the Houston
Ship Channel, Chief Executive Rich Kinder told analysts on
"We think there may be opportunity to add even additional
volumes on a going forward basis," he said during the company's
first-quarter earnings conference call.
Kinder Morgan last month said it would increase the
facility's processing capability by 40,000 barrels per day to
100,000 barrels per day and add 700,000 barrels of storage
capacity for a total of 1.9 million barrels.
The expansion increased the cost to $360 million from $200
million. The first phase will start up next year, followed by
the second phase in 2015, Kinder said.
In response to an analyst's question, Kinder later said the
company's 300,000 barrels per day crude/condensate pipeline that
originates in the Eagle Ford shale oil play in Texas is moving
growing volumes of condensate. The line started up in June last
Kinder said the initial contract with BHP Billiton
was for 25,000 barrels per day and is doubling.
"That throughput alone is sufficient to make it a very
viable project economically," Kinder added.
The company since struck a deal with Phillips 66 to
build a lateral pipeline to the refiner's 247,000 bpd refinery
in Sweeny, Texas, with an initial capacity of 65,000 bpd
expandable to 100,000 bpd. Kinder said Phillips has taken about
20,000 bpd of additional capacity so far.
He added that Kinder Morgan expects to add two more
customers that will need up to 50,000 bpd more in capacity.
"We see that is going to be an extraordinarily
good investment for us because there's just a lot of people, a
lot of producers want to get to the Houston Ship Channel,"
Kinder said. "That helped us secure the contract to build the