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August 15 11:26 AM

Governor Jindal and Parkway Pipeline Announce Upcoming Completion of $230 Million Energy Pipeline Project

Fuel pipeline from Norco, La., to Collins, Miss. produced $145 million in Louisiana project spending

 BOGALUSA — Today, Governor Bobby Jindal and Parkway Pipeline LLC officials announced the company’s 141-mile pipeline is scheduled to begin operating in September, transporting liquid petroleum products from refineries just west of New Orleans to the Plantation Pipeline terminal in Collins, Miss. for further transfer throughout the Southeast U.S. The $230 million capital investment – including $145 million spent in Louisiana – will push gasoline and diesel more effectively into American markets through the 3,100 miles of the Plantation Pipeline system. The project created 1,200 construction jobs, with 350 of the jobs based in Bogalusa and Washington Parish and the remainder in St. Tammany and St. Charles parishes. Altogether, Kinder Morgan employs 1,085 people in Louisiana with an annual payroll in excess of $71.5 million.


Kinder Morgan Energy Partners LP and Valero Energy Corp. are joint venture partners in Parkway Pipeline, which will convey the diesel and gasoline from Valero’s Norco, La., refinery to the Collins hub, where Kinder Morgan operates and owns a controlling interest in the Plantation Pipeline.


Governor Jindal said, “For decades, Louisiana has built and operated the most sophisticated energy infrastructure in the world, fueling business investment and job creation for countless petrochemical companies and other employers whose businesses rely on the oil and gas produced here in our state. This energy is transported to markets all over the world, and global companies are taking notice and continuing to invest in Louisiana because of our strong business climate, world-class energy infrastructure and highly-skilled energy workforce. We’re proud that Parkway Pipeline, and its joint venture partners Kinder Morgan and Valero, chose Louisiana for this vital investment that will help sustain jobs and vital energy services in our state and our nation.”


Parkway Pipeline LLC estimates the project will increase property tax revenue in Washington Parish by nearly $1 million a year and by $3.3 million in all Louisiana jurisdictions the pipeline traverses. From Norco, the pipeline passes through Lake Pontchartrain and for about two-thirds of the upland route it co-locates along existing utility rights-of-way. In addition to the construction jobs, Kinder Morgan will create up to five new permanents jobs as it operates the Parkway Pipeline. Kinder Morgan has invested more than $3.5 billion in Louisiana in the past 10 years.


“Parkway Pipeline is an exciting project that will enhance Louisiana’s ability to competitively source refined products into East Coast markets,” said Ron McClain, president of Kinder Morgan Products Pipelines.


Governor Jindal met with company, parish and local leaders at Bogalusa City Hall to highlight the upcoming opening of the Parkway Pipeline project and to discuss local issues with the officials as part of his 64-parish tour of Louisiana.


“We appreciate the economic contribution of Kinder Morgan’s pipeline project to Bogalusa’s economy,” Bogalusa Mayor Charles Mizell said. “As a hub for construction in Washington Parish, we were able to accommodate a construction yard and office in our Bogalusa Industrial Park. We are proud to be able to provide the needed facilities for this project and want everyone to know that Bogalusa is open for business.”


“I am so proud that Washington Parish has experienced an economic impact from the pipeline,” Washington Parish President Richard “Ned” Thomas said. “Thanks to Kinder Morgan, with the installation of the pipeline through Washington Parish over 350 were employed for the construction. The economic impact from revenues received from the pipeline will have a lasting effect on Washington Parish.”


About Parkway Pipeline LLC

Parkway Pipeline represents a partnership between Kinder Morgan and Valero consisting of a 141-mile, $230 million, 16-inch diameter pipeline originating in Norco, La., and terminating in Collins, Miss. The pipeline will have an initial capacity of 110,000 barrels per day, expandable to 220,000 barrels per day. For more about the pipeline, visit www.parkwaypipeline.com


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