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.