Kinder Morgan is hoping to revive a previously tabled plan to build a pipeline that would deliver Permian Basin oil to refineries in California, Genscape reports. The 250,000-barrel-per-day pipeline was shelved last year due to insufficient interest from shippers who favored the use of rail. Due to increased environmental scrutiny on crude-by-rail transport and permitting delays, however, the Freedom pipeline project may be more viable.
Kinder Morgan’s Tom Dobson said the rekindled project would include a topping unit that would blend light Permian Basin oil with heavier crude, which is more suitable for California refiners. Kinder Morgan could also export 100,000 barrels per day of condensate to Asia as part of the plan.
Dobson said it could take 40-48 months to bring the pipeline into service.
SEE ALSO: Plains All American to boost Permian Basin pipeline capacity
