Kinder Morgan Energy Partners and BP North America have finalized long-term commercial agreements to provide BP condensate processing services and storage at Kinder Morgan’s terminals located on the Houston Ship Channel.
BP has committed over 40,000 bpd of throughput at Kinder Morgan’s petroleum condensate facility which will split condensate into various components such as light and heavy naphtha, kerosene and gas oil.
The $200 million facility has been designed to provide future processing expansions up to 100,000 bpd throughput. BP also will lease an additional 750,000 bbls of storage that Kinder Morgan will add at its Galena Park terminal. The expansion is part of Kinder Morgan’s $75 million investment to construct five tanks that will connect to its condensate facility with new piping, manifolds and pumps. The company expects the new storage tanks and condensate facility to be in service in early 2014.