BioFuels Journal

Kinder Morgan Evaluates New Ethanol Pipeline Projects and Begins Testing Biodiesel Transport Via Collins, MS-Spartanburg, SC Pipeline

Houston—Kinder Morgan Energy Partners, L.P. (NYSE: KMP) announced October 15 that in addition to successfully performing tests to determine the commercial viability of moving ethanol in its Central Florida pipeline system, it is now undertaking tests to assess transporting biodiesel through its pipelines on a commercial basis.

The company is currently conducting a test movement of blended B-5 biodiesel in a segment of the Plantation Pipe Line system that transports gasoline and diesel from Collins, MS, to Spartanburg, SC.

Kinder Morgan, a 51 percent owner and the operator of Plantation Pipe Line Company, expects test results to be available by the end of October.

The company is also evaluating the transportation of biodiesel on its Portland to Eugene, OR, pipeline to support the forthcoming biodiesel mandate in Oregon.

“We are pursing pipeline solutions to the overall supply chain for biofuels,” said KMP Products President Tom Bannigan.

“We look forward to working with producers and our shippers as we continue to assess the optimum transportation and storage logistics for meeting the demand for alternative fuels in the market place.”

KMP recently completed a series of tests to demonstrate the commercial feasibility of transporting batched denatured ethanol in its 16-inch gasoline pipeline between Tampa and Orlando, FL.

The company is finalizing mechanical modifications to the pipeline and intends to offer this transportation service to its customers by mid-November.

Kinder Morgan is also evaluating other opportunities for transportation of batched ethanol in its pipeline portfolio.

In addition, the company has completed over $60 million in ethanol projects including modifications to tanks, truck racks and related infrastructure for new or expanded ethanol service at various terminals in the Southeast and Pacific Northwest and has approved an additional $27 million in investments to further expand its ethanol handling capability in southeastern markets.

Kinder Morgan offers offloading, storage and blending of ethanol at its terminals in Florida, Georgia, South Carolina, North Carolina, Virginia, Pennsylvania, New York, Illinois, Tennessee, Mississippi, Louisiana, Texas, California, Nevada, Arizona, Washington and Oregon.

For more information, call 713-369-8060.