Koch Pipeline and Arrowhead Pipeline Add to South Texas Crude Oil Capacity

September 2010 Vol. 237 No. 9

Koch Pipeline Company, L.P. and Arrowhead Pipeline, L.P. have announced an agreement and joint tariff to increase the amount of Eagle Ford crude transported to Corpus Christi via the Arrowhead pipeline.

“This agreement with Arrowhead is one of several projects to expand the joint capabilities of our pipelines in South Texas,” said Kim Penner, president of Koch Pipeline. “The Arrowhead lines primarily serve the western Eagle Ford production area of Frio, LaSalle, McMullen and Live Oak counties. The initial expansion phase is currently underway and will add capacity throughout 2011 of more than 50,000 barrels of crude and condensate per day.”

“This is the first in a series of expansions. Together we offer a solution to transport current production and the future growth in the Eagle Ford,” said Steve Jacobs, president of Arrowhead Pipeline and Harvest Pipeline Company. “The ability to help producers get their oil to market is critical.”

“Expansion will include extending our mainline to producers, additional pump stations, truck unloading facilities and crude storage,” Jacobs said. “Ultimately we will install new mainlines to transport the increased production.”

“We believe Corpus Christi is the most cost-effective market to clear Eagle Ford crude and condensate production,” Penner said. “Arrowhead and Koch Pipeline continue to develop options for adding even more capacity to accommodate growing domestic production.

“We are also in the process of building a new line to expand delivery capability to Flint Hills Resources’ Ingleside waterborne terminal and actively reviewing a new build extension into Karnes County,” Penner said.

The northern leg of the Arrowhead system runs through the Eagle Ford trend from Maverick County to San Patricio County. Arrowhead owns an extensive system of oil and gas gathering and mainline systems across South Texas and Louisiana. Harvest Pipeline Company is the operator of the Arrowhead systems.

Koch Pipeline is the largest pipeline transporter of South Texas crude and operates about 540 miles of active crude oil transportation lines in Texas. The company has relationships with other crude distribution systems that further its ability to provide services in this growing production area.

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