A significant expansion in the capacity of the Southeastern US’s main petroleum pipeline is currently in the works. The Plantation Pipeline moves refined petroleum products from Baton Rouge, LA to the Virginia coast, and is operated by Kinder Morgan (KMI), the largest transporter of petroleum products and C02 in North America.
The Roanoke Expansion Project will provide an additional capacity of 21,000 barrels a day, which has just become available for binding open season bidding. KMI will be able to offer increased capacity through improvements to pumps and storage terminals.
The Plantation Pipe Line Company is jointly owned by Exxon (XOM) and Kinder Morgan, and is one of the most significant transportation systems for refined petroleum in the United States. Baton Rogue is one of the busiest refinery locations in America, processing oil from the numerous rigs off the coast of Louisiana.
Shell Midstream Partners (SHLX) also recently held a binding open season on its Zydeco Pipeline from Houston, TX, confirming that midstream petroleum companies are on the move.