Kinder Morgan Energy Partners, L.P.
) has successfully concluded its binding open season for the Cochin
Reversal project. The partnership received strong backing for its
new service to transmit light condensate from Kankakee County,
Illinois, to existing terminal facilities near Fort Saskatchewan,
The project, estimated to cost about $225 million, is intended
to alter the western leg of Kinder Morgan's Cochin Pipeline so as
to link it to the Explorer Pipeline Company's pipeline in Kankakee
County. This will also enable the reversal of product flow in order
to carry the condensate northwest to Fort Saskatchewan.
During the open season, Kinder Morgan booked binding contracts
for over 100,000 barrels per day for a minimum tenure of 10 years.
All these commitments have received board approval.
The incredible response to the open season goes to show the
necessity of cost-effective access to light condensate from both
the Eagle Ford and the U.S. Gulf Coast to the fast-emerging
The project is expected to come online by July 1, 2014 depending
on the timely receipt of essential regulatory approvals and
necessary capital improvements. During the open season, the
hydraulic models were refined, making it viable for the Cochin
Pipeline to carry approximately 95,000 barrels per day of light
condensate capacity. The pipeline offers a new source of supply for
the growing demand of light condensate.
Cochin is a 1,900 mile, 12-inch, multi-product pipeline
operational between Fort Saskatchewan, Alberta, and Windsor,
Ontario that passes through Canada and seven states in the United
States. It currently carries propane and an ethane-propane mix to
Midwestern United States and eastern Canadian petrochemical and
Kinder Morgan holds a Zacks #3 Rank, which is equivalent to a
Hold rating for a period of one to three months. For the long term,
we maintain a Neutral rating on the stock. Kinder Morgan faces
Enbridge Energy Partners, L.P.
Products Partners, L.P.
ENBRIDGE EGY PT (EEP): Free Stock Analysis
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