US Kinder Morgan hits roadblock on Palmetto pipeline

HOUSTON (ICIS)–Energy infrastructure company Kinder Morgan announced on Tuesday that its application for a certificate of public convenience and necessity associated with the proposed Palmetto pipeline had been declined by the Georgia Department of Transportation (DOT).

Georgia law requires the DOT certificate for the state to authorize private companies to use eminent domain in taking private land. 

Ron McClain, Kinder Morgan products pipelines president, said the company was disappointed with the outcome of the proceedings, but would explore all possible options to continue with the pipeline.

“We continue to believe in the viability of the project and its economic benefits to the southeast region and Georgia in particular, and we plan to pursue all available options to move forward with the project,” McClain said.

The proposed pipeline is intended to transport refined petroleum products from Baton Rouge, Louisiana; Collins and Pascagoula, Mississippi; and Belton, South Carolina, to North Augusta, South Carolina; Savannah, Georgia; and Jacksonville, Florida.

McClain said the company was sensitive to issues surrounding the pipeline, including the potential use of eminent domain that could affect landowners, as well as environmental concerns.

Earlier this month, Kinder Morgan received regulatory approval from the US Federal Energy Regulatory Commission (FERC) for the rates, terms and conditions of service of its proposed Palmetto refined products pipeline.

Previously, the company estimated that potential savings for consumers in the southeastern US region could be as high as 6 cents/gal once Palmetto is in service, compared with current trucking or marine transportation.