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UPDATE 1-Kinder Morgan secures commitments on Cochin line
June 5, 2012 / 2:11 PM / 5 years ago

UPDATE 1-Kinder Morgan secures commitments on Cochin line

NEW YORK, June 5 (Reuters) - Kinder Morgan Energy Partners LP said on Tuesday it completed a binding season to reverse its Cochin propane and ethane-propane pipeline to carry 95,000 barrels per day (bpd) of condensates from Illinois to terminals in Fort Saskatchewan, Alberta.

The company said it secured commitments for at least 10 years on 100,000 barrels per day of capacity during the open season, which started in late April.

The reversal will help transport light condensate from the Eagle Ford Shale and the U.S. Gulf Coast to Canadian market, according to Tom Bannigan, president of Kinder Morgan’s products pipeline group.

With enough shipper support, the pipeline will begin service on July 1, 2014, company spokeswoman Emily Mir said.

For a total cost of about $225 million, the project will link the Cochin line with the Explorer products pipeline, which carries refined petroleum products from the U.S. Gulf Coast to the Midwest, in Kankakee County, Illinois, and reverse Cochin to move condensate northwest to Alberta.

After making changes during the open season, Kinder Morgan plans to transport 95,000 barrels per day of light condensate on Cochin. The company had estimated the pipeline would have a 75,000 bpd capacity.

Explorer, owned by subsidiaries of Chevron Corp, Phillips 66, Marathon Petroleum Corp, Sunoco Logistics Partners LP, Shell and American Capital Strategies Inc, already had an open season underway until May 7 for a link-up with Enbridge Inc’s Southern Lights line in Illinois. (Reporting by Selam Gebrekidan; editing by Jeffrey Benkoe)

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