Tyler, Texas-based KP Engineering (KPE) recently secured a fixed price contract from Targa Terminals LLC, a subsidiary of Houston-based Targa Resources Corp., for a value of about $100 million.


KPE will design and construct a 35,000-barrel-per-day (bbl/d) crude and condensate splitter and an associated tank farm at Targa’s Channelview Terminal on the Houston Ship Channel.
The project represents the latest in a streak of successful project awards, the company noted, as it “continues to show unbroken resiliency in the face of industry downturn.”


“KPE continues to leverage process expertise and personnel experience to gain design and productivity advantages on projects of interest. These project development and execution strengths are applicable even in a downcycle,” KPE spokesman Bill Heimbaugh told Hart Energy.


The project, which was previously announced in 2014, is supported by a long-term fee-based arrangement between Targa Resources and Noble Americas Corp., a subsidiary of Noble Group Ltd. The proposed project would have the capability to split about 35,000 bbl/d of condensate into its various components, including naphtha, kerosene, gasoil, jet fuel and LPG.

The project is expected to be completed in the first quarter of 2018, Heimbaugh confirmed with DSB.

Additionally, KPE is actively pursuing many projects that are likely to be awarded in 2016 and 2017, according to Heimbaugh.

“These projects are with refining, petrochemical and gas processing clients. The types of projects cover the spectrum of Tier III compliance, refinery unit revamps, feedstock flexibility and capacity upgrades, light ends processing, new fractionation units and various processing units designed for integration into the petrochemical supply chain,” he said. The timing of projects is subject to market economics and government regulations, Heimbaugh further noted.

Meanwhile, the company said that it is continuing with growth plans, including hiring additional employees as new opportunities come through and have expanded its facilities with new corporate offices in Tyler, Texas, and offices in Houston and Tulsa, Okla.

“We are able to maintain our competitive edge and create exceptional value because we employ some of the finest professionals in our industry,” KP Engineering Chairman and CEO Brandon T. Steele said in a statement. “Their character, honor and work ethic are what makes our company great and allows KPE to deliver cost-effective, quality EPC solutions.”

Brandy Jules can be reached at bjules@hartenergy.com.

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