Kinder Morgan Crude and Condensate Pipeline – Sweeny Lateral

Sweeny Lateral ProjectKinder Morgan is proposing a $90 million expansion project to its recently constructed Kinder Morgan Crude and Condensate (KMCC) pipeline, which was placed in service in June 2012. The pipeline 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. The new project involves plans to build a 27-mile, 12-inch diameter lateral pipeline (Sweeny Lateral) from its existing pipe in Wharton County, Texas, to Phillips 66’s Sweeny Refinery in Brazoria County, Texas. Kinder Morgan will provide Phillips 66 with a portion of the lateral pipeline’s initial 65,000 barrels per day (bpd) of capacity, which is expandable to 100,000 bpd.

In addition, this project proposes to add associated receipt facilities by constructing a five-bay truck offloading facility and three new storage tanks with approximately 360,000 barrels of crude/condensate capacity at Kinder Morgan’s DeWitt Station in DeWitt County, Texas, and Wharton Pump Station in Wharton County, Texas.

Economic impact

Kinder Morgan’s KMCC expansion project will generate approximately 500 temporary construction jobs. This includes approximately 325 jobs to construct the Sweeny Lateral pipeline, 100 jobs to construct the DeWitt facilities, and 75 jobs to construct the Wharton County facilities. The estimated local property tax impact of these expansions will be $900,000 when completed.

The economic impact of construction will be significant as workers will reside locally and rely upon local businesses, housing and support services during the construction period. Local businesses will benefit directly from servicing these workers and the project.

Regulatory overview

A number of federal and state agencies will be involved in the approval and oversight of the project, including the U.S. Army Corps of Engineers and the Railroad Commission of Texas. The Railroad Commission of Texas has construction audit and oversight responsibility for intrastrate pipelines in Texas. The proposed pipeline will be built and operated in accordance with the U.S. Department of Transportation, Pipeline and Hazardous Materials Safety Administration standards.

Expansion Project Timeline