US Kinder Morgan cancels Texas-to-California oil pipeline plan

31 May 2013 23:44  [Source: ICIS news]

HOUSTON (ICIS)--Kinder Morgan Energy Partners has cancelled its plans for a $2bn (€1.5bn) pipeline connecting West Texas crude oil to California, citing a lack of interest from potential shippers, the midstream company said on Friday.

“At Kinder Morgan, we don’t believe in the concept of build it and they will come,” said Mark Kissel, Kinder Morgan’s west region gas pipelines president, in a statement to the press. “We stated at the outset that we would not move forward with the project without customer support, and we did not receive enough interest for us to commit to building the project at this time.”

The proposed pipeline would have transported up to 277,000 bbl/day of Permian Basin crude to California refineries.

The Houston-based company said it will instead focus on shipping crude by rail.

($1 = €0.77)

By: Jeremy Pafford
+1 713 525 2653

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