Kinder Morgan Energy Partners LP(KMP) has agreed with a large Eagle Ford Shale producer to extend the Kinder Morgan Crude and Condensate (KMCC) pipeline farther into South Texas. KMP is investing $74 million to build an 18-mile, 24-inch diameter lateral northwest from its DeWitt Station to a new facility in Gonzales County, TX, where it would construct 300,000 bbl of storage, a pipeline pump station and truck offloading facilities. The lateral would have capacity of 300,000 b/d and enable KMP to batch Eagle Ford crude and condensate from the Gonzales Station via KMCC to idelivery points on the Houston Ship Channel and/or the soon to be completed Sweeny Lateral pipeline serving the Phillips 66 Sweeny Refinery in Brazoria County, TX.
Demand for liquid nitrogen in the Permian Basin from oil and gas activity has prompted Air Products to build a production facility in the Midland-Odessa, TX area scheduled to be online in 2015 with 250 ton/d of production capacity. "The plant will assist in meeting increased liquid nitrogen demand for coiled tubing, fracturing and other oilfield applications, as well as enhance our responsiveness level to customers for field deliveries and services," said Nelson Squires, vice president for North America merchant gases. In late 2012, Air Products dedicated a similar production facility in Mooreland, OK, that serves the surrounding producing areas, as well as Kansas and Texas.