KMI receives FERC approval on Palmetto Pipeline

Kinder Morgan, Inc. has received approval from the Federal Energy Regulatory Commission (FERC) regarding the rates, terms and conditions of service for the proposed Palmetto Pipeline on 1 May 2015.

“We are pleased to receive FERC approval, which allows us to advance the development of this important infrastructure project supporting distribution of domestically produced petroleum products,” said Kinder Morgan Products Pipelines President Ron McClain. “This milestone brings the company one step closer to its goal of delivering low-cost additional supplies of refined petroleum products and denatured fuel ethanol to pipeline-constrained markets in the southeastern United States.”

As an example, the company estimates that the potential savings for southeastern consumers could be as high as 6 cents per gallon once Palmetto is in service versus current trucking or marine transportation.

The proposed Palmetto Pipeline will enable refined petroleum products to be transported from Baton Rouge, Louisiana, Collins and Pascagoula, Mississippi, and Belton, South Carolina, to North Augusta, South Carolina, Savannah, Georgia, and Jacksonville, Florida. The system will have a design capacity of up to 167 000 bpd and will consist of a segment of expansion capacity that Palmetto will lease from Plantation Pipe Line Company between Baton Rouge, Louisiana, and Belton, South Carolina.

A new 360 mile pipeline from Belton, South Carolina, to Jacksonville, Florida, will also be constructed as part of the system. Pipelines are the safest and most environmentally sound way to transport refined products, and Kinder Morgan’s safety and environmental performance is significantly better than the pipeline industry average.

Adapted from press release by Hannah Priestley-Eaton

Published on 08/05/2015

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