Kinder Morgan Energy Partners will invest approximately $54 million to build an interconnect and other facilities for its Kinder Morgan Crude and Condensate (KMCC) pipeline after entering into a long-term transportation agreement with Republic Midstream Marketing, LLC.
Republic will build a gathering pipeline from Lavaca County, Texas to the new Interconnection at KMP’s DeWitt Station, near Cuero, Texas. KMP will build two storage tanks (each with 120,000 barrels of capacity), truck offloading racks and related facilities. The entire project is expected to come online June of next year.
“We are pleased to enter into this agreement with Republic, as it gives KMCC access to additional Eagle Ford production areas in Gonzales and Lavaca counties,” said Don Lindley, president of Natural Gas Liquids for KMP. “We have now secured long-term commitments for more than 75 percent of the 300,000 barrels per day of capacity on KMCC.