Koch Pipeline Company, L.P., is seeking corporate approval to build a 16-inch pipeline to connect producers in Karnes County to Corpus Christi. Koch projects the project could be completed by the end of 2012 and would add an initial capacity of 120,000 gallons per day. The expansion will also include pump and truck receipt stations and tanks, with one station to likely be placed in Helena.
“Koch Pipeline certainly is excited about the opportunities we have to grow our capabilities to serve the Eagle Ford play,” Koch Pipeline spokeswomen Katie Stavinoha said. “We already have the lines currently in place that are allowing us to do some of that. The company has operated pipelines throughout South Texas for a number of years. This is an expansion rather than just coming into that area.”
Koch Pipeline operates more than 540 miles of pipeline in South Texas. The company believes that after the proposed pipeline is completed, it could upgrade its capacity to 200,000 gallons per day.
In August, in conjunction with Arrowhead Pipeline, L.P., Koch Pipeline announced an agreement and joint tariff to add 50,000 barrels per day of crude and condensate capacity during 2011 from the western counties of the Eagle Ford trend. The proposed station in Helena would connect into Koch Pipeline’s existing crude system in Pettus and Refugio.
“This is a cornerstone project that complements our recent efforts to better serve Eagle Ford producers,” Koch Pipeline president Kim Penner said in a press release. “We have already completed or are in the process of constructing several projects that will add more than 140,000 barrels of capacity by the end of 2011 – all aimed at moving more Texas crude to Corpus Christi.”
Koch Pipeline currently is building a line to expand delivery capability to Flint Hills Resources’ Ingleside waterborne terminal. In addition, Koch Pipeline recently leased 30,000 barrels of capacity from NuStar Logistics on a line from Pettus to Corpus Christi.