The Koch Pipeline Company has announced plans Monday to build a pipeline from Pettus to Corpus Christi to help move more Eagle Ford crude oil to market.
County Judge David Silva said that the new pipeline wouldn’t have a direct impact on the county finances.
“It will only impact us if they will have to cross a road or right of way,” he said.
However, he said, the county will see an indirect benefit.
“They will need to pay for rights of way to whose land they go through,” he said. “That will mean more monies turning over and people spending it.”
Plans call for a 20-inch line to be built from Pettus, in north Bee County, to San Patricio County where it will connect with existing lines. The oil pumped through that pipeline will eventually end up in Corpus Christi.
The project is still in the permitting and right of way stage, Koch officials announced. It is expected to be completed by the middle of next year.
Katie Stavinoha of Koch said this week that the new pipeline is one of two the company plans for South Texas. The construction of one line, originating in Karnes County, is underway now.
The company is already hiring people for that Karnes County project.
Stavinoha said the company will create at least 20 permanent jobs in South Texas and hire contractors who will provide a large number of related jobs.
The new pipeline will be capable of transmitting as many as 200,000 barrels of oil a day.
Production in the Eagle Ford Share formation is outpacing the ability of companies to get the oil to refineries and other markets.
“With this large-diameter line in operation, Koch Pipeline will have increased its system capability from Karnes County to the Corpus Christi-area to about 250,000 barrels a day,” Koch Pipeline President Kim Penner said.
A press release from the company said Koch is the largest transporter of South Texas crude oil with about 540 miles of active transportation lines in the state.
The completion of this most recent pipeline is expected to coincide with the completed expansion of the Flint Hill’s terminal in Corpus Christi.
The crude oil then will be shipped by barge to refineries along the Gulf Coast, according to news sources.
Silva said ties to the coast like this are important because it means more jobs and people in the area, which benefits the county and local businesses.
“Anything that ties us to the coast is a very good thing,” he said.
Gary Kent is a reporter at the Bee-Picayune and can be reached at 358-2550, ext. 120, or at reporter@mySouTex.com.