The company will invest about $74m to construct an 18-mile lateral pipeline with 24-inch diameter northwest from its DeWitt station to a new facility in Gonzales county.
The company will also construct 300,000 barrels of storage, a pipeline pump station and truck offloading facilities with capacity of 300,000 barrels per day that will allow it to batch Eagle Ford crude and condensate from the new Gonzales station through KMCC.
KMP Natural Gas Liquids Business Development president Don Lindley said, "We are pleased to enter this long-term arrangement to move more Eagle Ford Shale product to the Houston Ship Channel and surrounding areas and once again provide much needed optionality to Eagle Ford producers and Houston market consumers."
The project is expected to capitalize KMP unitholders following the completion scheduled for early 2015.
