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02-05-2013

Kinder Morgan Energy partners to expand capacity on Sweeny lateral pipeline

Kinder Morgan Energy Partners, L.P. today announced it has entered into a long-term contract to support the expansion of its Sweeny Lateral pipeline that the company is building from the Kinder Morgan Crude Condensate (KMCC) pipeline to Phillip 66’s Sweeny Refinery in Brazoria County, Texas. The expansion will increase the capacity on the 27-mile, 12-inch diameter lateral pipeline from an initial 30,000 barrels per day (bpd) to 100,000 bpd. Kinder Morgan will add new pumps and an additional 120,000-barrel storage tank at its Wharton Pump Station in Wharton County, Texas, and increase the truck offload capabilities at its DeWitt Station in DeWitt, County, Texas, to facilitate the increase in capacity. 

“We are pleased to provide Phillips 66 with a flexible option to move more crude and condensate out of the Eagle Ford shale to their refinery in Sweeny,” said KMP Products Pipelines President Ron McClain. “This expansion further demonstrates the strategic importance of KMCC and its role in transporting Eagle Ford product to markets on the Texas Gulf Coast.” The project is expected to be immediately accretive to cash available to KMP unitholders upon completion at the end of 2013. 

Kinder Morgan’s crude/condensate pipeline, which went into service in June 2012, transports crude/condensate from the Eagle Ford shale to the Houston Ship Channel through 65 miles of new-build construction and 113 miles of converted natural gas pipeline.

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