HOUSTON, April 2 Kinder Morgan Energy Partners
on Tuesday launched a binding open season to gauge
shipper interest in a pipeline that would move cheap U.S. crude
from Texas to import-dependent California refineries.
Dubbed the Freedom Pipeline, the project would involve
converting a natural gas pipeline to move crude oil from the
Permian Basin as well as construction of new crude pipeline and
In January, Kinder Morgan Chief Executive Richard Kinder
told analysts that the potentially $2 billion project could move
up to 400,000 barrels per day, but would be profitable at
On Tuesday, the company said it would have an initial
capacity of 277,000 bpd.
Kinder Morgan would build 22 miles of new pipeline for
interconnections in California, and 200 miles of pipeline
between Wink and El Paso in West Texas. The company also would
build tank facilities in the receipt area of Wink and Midland,
Texas, and at delivery points in California.
If enough shippers express interest and regulators approve,
construction would start by June 2015 with startup slated for
the latter part of the fourth quarter 2016.