Kinder Morgan moves ahead on Plantation Pipe Line expansion
Kinder Morgan has had a successful open season on its Roanoke Expansion projects on the Plantation Pipe Line System, the company announced on Monday.
An open season is a period to determine market interest in the project where potential customers have the opportunity to sign up for part of the new pipeline’s capacity rights.
After the open season, Plantation Pipe Line secured long-term committed volumes of 20,000 barrels per day (bpd). The Plantation Pipe Line Company’s investment in the project is about $49 million. In addition, Kinder Morgan Southeast Terminal’s (KMST) investment, backed by 10,000 bpd of long-term committed volumes, is approximately $9 million.
“We are pleased with the successful Plantation Pipe Line open season and the opportunity to invest expansion capital to serve the Roanoke area’s needs with reliable transportation and storage services in projects that meet our investment criteria,” James Holland, president of Kinder Morgan Products Pipelines, said.
Plantation Pipe Line will now submit a petition to the Federal Energy Regulatory Commission (FERC) for approval of commercial terms for the project. Pending regulatory approvals, the project is scheduled to be in service by April 1, 2020.
The Plantation Pipe Line Roanoke Expansion will provide 21,000 bpd of refined petroleum products capacity from the Baton Rouge, Louisiana, and Collins, Mississippi, origin points to the Roanoke, Virginia, area. The expansion will largely consist of additional pump capacity and storage on the Plantation system. The expansion will provide approximately 10,000 bpd of incremental refined product throughput capacity at the terminals.
