Kinder Morgan officially made its first delivery of ethane-propane (E-P) mix from the Conway hub to Sarnia, Canada, via the Cochin Pipeline in June. The pipeline has the capability of delivering up to 30,000 bbl. per day of E-P mix, which will be increased to 50,000 bbl. per day in mid-July 2012.
The actual transportation volumes will depend upon shipper nominations, but the service should help alleviate the tremendous backlog of E-P mix at the Conway hub by providing producers with another outlet for their volumes in the region.
Operators aren’t seeing a noticeable impact on prices at Conway thus far because ethane prices continue to trade below $0.10 per gallon, while propane price levels have been about $0.50 per gallon.
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