November 15, 2010
Koch Pipeline Company, L.P. is seeking corporate approval to further expand its South
Texas Crude oil system. Approval is expected by year end.
The proposed new 16-inch pipeline to connect Eagle Ford producers in the Karnes County area to Corpus
Christi, Texas, will have an initial capacity of 120,000 barrels per day with future expansion capability of
more than 200,000 barrels per day.
“This is a cornerstone project that complements our recent efforts to better serve Eagle Ford producers,”
said Kim Penner, president of Koch Pipeline. “We have already completed or are in the process of
constructing several projects that will add more than 140,000 barrels of capacity by the end of 2011 – all
aimed at moving more Texas crude to Corpus Christi.”
The company today is the largest transporter of South Texas crude oil.
“Koch Pipeline’s expansion not only fits well with Flint Hills Resources’ strategy to run more domestic
crude at our Corpus Christi refinery but also our plans to market crude from our Ingleside waterborne
terminal,” said Brad Urban, senior vice president of supply. “What’s more, we are evaluating projects to
enhance our refinery processing capability to handle even more volumes of Eagle Ford crude in the future.”
The project, in the heart of the northern Eagle Ford trend, should be complete in the fourth quarter of 2012.
The expansion will include pump and truck receipt stations and tanks. A new station likely near Helena
will connect into Koch Pipeline’s existing crude system in Pettus and Refugio.
“We are pleased with our steady progress to provide timely logistic solutions to the Corpus Christi energy
center,” Penner said. “We expect to receive final approval to move forward with this pipeline expansion by
the end of the year. Our privately held status is an advantage when it comes to moving quickly to respond to
market needs. Our next phase is to evaluate a large-diameter trunk line to connect our Pettus infrastructure
and continue into the western counties of Live Oak, McMullen, LaSalle and Dimmit.”
Koch Pipeline currently is building a line to expand delivery capability to Flint Hills Resources’ Ingleside
waterborne terminal. In addition, Koch Pipeline leased 30,000 barrels of capacity from NuStar Logistics on
a line from Pettus to Corpus Christi. In August, in conjunction with Arrowhead Pipeline, L.P., Koch
Pipeline announced an agreement and joint tariff to add 50,000 barrels per day of crude and condensate
capacity during 2011 from the western counties of the Eagle Ford trend.
Koch Pipeline operates about 540 miles of active crude oil transportation lines in Texas. The company also
has ongoing relations with other crude distribution systems that further its ability to provide services in this
growing production area.
Koch Pipeline Company, L.P. has earned numerous local, state and national level safety awards. Koch Pipeline operates about 4,000 miles of pipelines that transport crude oil, refined products, natural gas liquids and chemicals. Koch Pipeline Company, L.P. is an indirect, wholly owned subsidiary of Koch Industries, Inc. Learn more at www.kochpipeline.com.