Koch Pipeline To Expand South Texas Crude System

January 2011 Vol. 238 No. 1

Koch Pipeline Company, L.P. is seeking corporate approval to further expand its South Texas Crude oil system.

The proposed 16-inch pipeline to connect Eagle Ford producers in the Karnes County area to Corpus Christi will have an initial capacity of 120,000 bpd with future expansion capability of more than 200,000 bpd.

“This is a cornerstone project that complements our recent efforts to better serve Eagle Ford producers,” said Kim Penner, president of Koch Pipeline. “We have already completed or are in the process of constructing several projects that will add more than 140,000 bbls of capacity by the end of 2011 – all aimed at moving more Texas crude to Corpus Christi.”

The project, in the heart of the northern Eagle Ford trend, should be complete in the fourth quarter of 2012. The expansion will include pump and truck receipt stations and tanks. A new station likely near Helena will connect into Koch’s existing crude system in Pettus and Refugio.

Koch Pipeline is building a line to expand delivery capability to Flint Hills Resources’ Ingleside waterborne terminal. In addition, Koch Pipeline leased 30,000 bbls of capacity from NuStar Logistics on a line from Pettus to Corpus Christi. In August, in conjunction with Arrowhead Pipeline, L.P., Koch Pipeline announced an agreement and joint tariff to add 50,000 bpd of crude and condensate capacity during 2011 from the western counties of the Eagle Ford trend.

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