Koch Pipeline Company Moving Ahead On 20-Inch Eagle Ford Pipeline in Texas

Shareholder approval finalized

Koch Pipeline Company Moving Ahead On 20-Inch Eagle Ford Pipeline in Texas

June 28, 2011

Koch Pipeline Company, L.P. received final shareholder approval to build a 20-inch crude oil pipeline between Pettus and Corpus Christi, Texas to move Eagle Ford production. The line, which is nearing permit and right-of-way acquisition conclusion, is expected to be complete next summer.

“With this line, Koch Pipeline ultimately will have the capability to move 250,000 barrels-per-day of Eagle Ford production from the Karnes County area to the Corpus Christi-area,” said Kim Penner, Koch Pipeline president.

The line’s completion will coincide with the updates to affiliate Flint Hills Resources’ Ingleside, Texas terminal that will have the capacity to ship up to 200,000 barrels per day of production via barge to other Gulf Coast markets.

With this new pipeline, and the other investments Koch Pipeline has made in terminals, lines and lease agreements with other companies, the company will have increased transportation capability into Corpus Christi and Ingleside to more than 350,000 barrels per day.

“We have quickly responded to producers’ needs to move crude oil and condensate to market. A key focus for the immediate future will be to help producers move their crude oil and condensate more efficiently by expanding gathering systems and connecting them to this new trunk line and our existing pipelines,” Penner said.

Koch Pipeline is nearing completion of a short line in the Ingleside area to tie in existing systems, and expects to complete construction on a 16-inch line from Helena, Texas, to Pettus in the fourth quarter.

The company is the largest transporter of South Texas crude oil