KM-Valero joint venture pipeline headquarters to locate in Covington, La.

Kinder Morgan Energy Partners-Valero pipeline headquarters will be locating in the city of Covington, announced Covington Mayor Mike Cooper at the Covington city council meeting on Oct. 18.

The company will have about 20 professional positions, some hiring locally, some from their corporate offices elsewhere and will occupy about 7,000 square feet in 2000 Covington Centre.

Cooper said the company plans to become involved in local business organizations including the Covington Business Association, patronizing local restaurants and businesses in the course of the business day and plan on being here for two to three years.

The company is constructing a 136-mile, 16-inch pipeline to transport gasoline, jet fuel and diesel from refineries in Norco to an existing petroleum transportation hub in Collins, Miss. owned by Plantation Pipe Line Co., 51 percent of which is owned by Kinder Morgan. Kinder Morgan will operate the pipeline.

Kinder Morgan is partnering with Valero Energy Corp. that will own Parkway Pipeline LLC. The pipeline will have an initial capacity of 110,000 barrels per day with the ability to expand to more than 200,000 b/d, according to a news release.

Pending receipt of environmental and regulatory approvals, the approximately $220 million pipeline project is expected to be in service by mid-year 2013.

About $140 million of the construction cost will be spent in Louisiana and $80 million in Mississippi. Local property tax impact is estimated to be $3.3 million in Louisiana and $2.5 million in Mississippi, according to the news release.

According to the new release, "The economic impact of construction for a project of this size will be significant as workers will reside locally and rely upon local businesses, housing and support services during the construction period. Local businesses will benefit directly from servicing these workers and the project directly."

NuStar, Valero to build South Texas pipeline system serving Eagle Ford

SAN ANTONIO, Texas - NuStar Energy L.P. announced on Sept. 7 that it has entered into an agreement with Valero Energy Corp. in which NuStar will modify existing sections within its South Texas pipeline system and build new sections to transport Eagle Ford and other crude oils.

The projects will help Valero improve transportation of crude and condensate to supply its refineries in Three Rivers and Corpus Christi, Texas.

NuStar will reverse an eight-inch refined products pipeline that currently runs from Corpus Christi to Three Rivers and will convert it to crude oil service. The pipeline will provide capacity to transport Eagle Ford crude and condensate to Valero's Corpus Christi refinery. The line is expected to be in full service by the end of September 2011.

NuStar will also build 55 miles of new 12-inch pipeline that will connect to existing pipeline segments to move crude oil from Corpus Christi to Valero's Three Rivers refinery. This system is expected to be completed and in service by the second quarter of 2012.

Valero plans 100,000 b/d Quebec pipeline

MONTREAL, Quebec - Valero Energy Corp. plans to build a 100,000 b/d pipeline between its refinery near Quebec City and a fuel storage site on the island of Montreal, the company said.
The line will help the refinery meet fuel needs in the Montreal market, according to Louis Forget, a company spokesman.
Construction will probably begin in the late summer or early fall, he said. Valero ships 45,000 to 50,000 b/d of fuels from its Quebec refinery by train and vessel to Montreal. The company also imports some fuels to meet demand, said Forget.
The planned pipeline could be expanded to transport 170,000 b/d of gasoline and distillate fuels with additional pumps, Forget said. There are no plans to expand the 265,000 b/d refinery, he said.