Kinder Morgan Energy Partners, L.P. completed an extended binding open season on Oct. 30 for commitments for the proposed Palmetto Project which offers shippers a new refined products service to move gasoline, diesel and ethanol from Louisiana, Mississippi and South Carolina to South Carolina, Georgia and Florida.
“We are pleased that we received sufficient shipper commitments to proceed with the project, and we will be notifying shippers of awarded capacity in November,” said Ron McClain, president of Products Pipelines for KMP. “Contract terms will range from five to 10 years per shipper, and the project remains on track for an in-service date of July 2017, pending regulatory approvals.”
The $1 billion project will provide shippers looking to move refined petroleum products from the Gulf Coast with access to new markets in the Southeast. The project has a design capacity of 167,000 bpd and would consist of a segment of expansion capacity that Palmetto would lease from Plantation Pipe Line Co. between Baton Rouge, LA and Belton, SC. A 360-mile pipeline from Belton, SC to Jacksonville, FL would also be constructed as part of the project.
In other news, Kinder Morgan announced NOVA Chemicals as the anchor shipper for its proposed Ontario Pipeline Access (UTOPIA) project which will provide opportunities to transport ethane and ethane-propane mixtures from the Utica Shale. They will develop, construct, own and operate a 240-mile, 12-inch pipeline from Harrison County, OH to Kinder Morgan’s Cochin Pipeline near Riga, MI where the company would then move product eastward to Windsor, Ontario.
UTOPIA would transport previously refined or fractionated NGLs, including ethane and propane, with an initial 50,000 bpd of capacity, which is expandable to more than 75,000 bpd. The $500 million pipeline project is expected to be in service by early 2018.