Industry Briefs
Kinder Morgan Energy Partners LP (KMP) has expanded its contract with General Dynamics NASSCO for the design and construction of an additional 50,000 deadweight ton liquefied natural gas fueled-conversion-ready petroleum products tanker with a 330,000 bbl cargo capacity. Construction is scheduled to begin in the fourth quarter of 2015 with delivery slated for the second quarter of 2017. The tanker will be constructed as a sister tanker to the four Jones Act tankers KMP currently has under construction at the NASSCO shipyard in San Diego. Construction of the new tanker is supported by a long-term charter with a major shipper and is evidence of its commitment to transporting domestic crude oil, condensate and refined products for the domestic market, KMP said.
Canyon Midstream Partners LLC has struck a gathering and processing agreement with what it said is one of the Permian Basin’s largest producers. Services will be provided by Canyon’s James Lake System. Phase I of James Lake is under construction and is expected to begin interim service in this month. When completed in the fourth quarter, Phase I will consist of a 105 MMcf/d cryogenic gas processing plant in Ector County, TX; 60 miles of 12-inch diameter trunkline; and six field compressor stations providing low-pressure gathering services in Ector, Andrews, Winkler, Martin, Dawson and Gaines counties, TX. Canyon has begun development of James Lake Phase II, which will add a second 100 MMcf/d cryogenic processing plant in Martin County and 60 miles of 12-inch diameter trunkline, expanding the system’s service territory into Howard and Borden counties, TX. Canyon expects Phase II to begin operations in the first half of 2015.
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