HOUSTON, May 14 (Reuters) - Double Eagle Pipeline LLC has begun moving Eagle Ford condensate from Three Rivers, Texas, to Magellan Midstream Partners LP’s terminal in Corpus Christi, Magellan and 50/50 partner Kinder Morgan Energy Partners LP said on Tuesday.
Double Eagle’s new truck unloading and storage facility near Three Rivers also has started up, the companies said.
The startup of the condensate pipeline is part of a $150 million project that includes 140 miles of new 12-inch pipeline that connects to an existing Kinder Morgan 50-mile, 14- and 16-inch pipeline.
The initial capacity is 100,000 barrels per day but can be expanded to 150,000 bpd with more pumps, the companies said.
Nearly two weeks ago, Magellan Chief Executive Mike Mears told analysts that shipper interest in the Double Eagle pipeline had increased as the companies neared the startup.
Double Eagle expects to finish the western leg of the project from Gardendale near Cotulla, Texas, to Three Rivers in the third quarter.
Kinder Morgan became Magellan’s partner in the project on May 1, when the pipeline giant closed its $5 billion acquisition of Houston-based Copano Energy.