Kinder Morgan Energy Partners, L.P. (KMP) announced it will build and operate a new 136mi, 16in pipeline to transport gasoline, jet fuel and diesel from refineries in Norco, Louisiana, to an existing petroleum transportation hub in Collins, Mississippi. The hub is owned by Plantation Pipe Line Company; Kinder Morgan owns 51% of Plantation Pipe Line Company and operates the system. The refined petroleum products will be transported from the hub by pipeline systems that serve major markets in the southeastern United States. Kinder Morgan is working with Valero Energy Corp in this joint venture that will own Parkway Pipeline LLC. Initially, the pipeline will have an initial capacity of 110,000bpd with the ability to expand to more than 200,000bpd. The USD 220 million project is expected to be in service by mid-year 2013, pending receipt of environmental and regulatory approvals.
