Kinder Morgan Energy Partners LP (KMP) and BP North America struck agreements for KMP to provide BP with condensate processing services and storage at Kinder Morgan’s terminals on the Houston Ship Channel.

Tom Bannigan, president of KMP’s products pipelines business, said the agreement reflects “continued strong demand to bring Eagle Ford Shale production to the Gulf Coast. Our splitter facility combined with our Eagle Ford-to-Houston crude/condensate pipeline and associated Houston Ship Channel storage facilities offer customers like BP unparalleled connectivity to the full range of Gulf Coast markets…”

The KMP Crude/Condensate pipeline (KMCC) recently entered service, carrying crude oil and condensate from the Eagle Ford to the Houston Ship Channel (see Shale Daily, June 15). KMCC will also tie into Kinder Morgan’s planned petroleum condensate processing facility to be located near the company’s Galena Park, TX, terminal on the Houston Ship Channel (see Shale Daily, Dec. 15, 2011).

BP has committed more than 40,000 b/d of throughput at KMP’s petroleum condensate facility, which will split condensate into various components such as light and heavy naphthas, kerosene and gas oil. The approximately $200 million facility has been designed to provide future processing expansions up to 100,000 b/d throughput.

BP also will lease an additional 750,000 bbl of storage that KMP will add at its Galena Park terminal. The expansion is part of KMP’s $75 million investment to construct five tanks that will connect to its condensate facility with new piping, manifolds and pumps. The company expects the new storage tanks and condensate facility to be in service in the first quarter of 2014.