* Kinder increasing volumes of condensate transported to
* Company could use land near separate terminal project for
By Kristen Hays
HOUSTON, July 17 Kinder Morgan Energy Partners
LP expects to participate in export facilities for
condensate from the Eagle Ford shale oil play in Texas, Chief
Executive Richard Kinder told analysts on Wednesday.
"We are working with expanding our reach into the Eagle Ford
and the ability to handle more and more condensate," Kinder
said. "I think there will be additional export of products."
Kinder Morgan is building a splitter at its Galena Park
terminal along the Houston Ship Channel to process the
extra-light condensate that is produced with crude oil from the
Those very light hydrocarbons can be sold as crude oil, a
diluent to blend with heavy crude oil such as that produced in
Canada, or they can be processed and exported like refined
Last year Kinder Morgan started up a 300,000 barrel per day
crude and condensate pipeline that moves Eagle Ford to the ship
channel facilities, and is expanding it to hook into output from
a ConocoPhillips operation. The splitter project also
has been expanded to add a second unit for a total capacity of
In addition, the company's joint-venture 100,000 bpd Double
Eagle Pipeline LLC with Magellan Midstream Partners LP
started up in May and moves Eagle Ford condensate from Three
Rivers to Corpus Christi, Texas.
He said as condensate output increases, exports will help
relieve expected bottlenecks.
Kinder Morgan is looking at export facilities partly in
conjunction with its joint-venture Battleground Oil Specialty
Terminal Company LLC (BOSTCO) project. The $485 million diesel,
residual fuel and black oil terminal project is under
construction along the ship channel.
"That's not the original purpose of it," he said of that
project and condensate exports, "but we certainly have land down
there and we will be able to participate in export facilities,"