POST Online Media Lite Edition


Parkway Pipeline to start with $230 million project

Staff writer |
Parkway Pipeline's 141-mile pipeline is scheduled to begin operating in September. The project is worth $230 million, including $145 million spent in Louisiana, and it will transport liquid petroleum from New Orleans to the rest of the U.S.

Article continues below

The project was announced by Governor Bobby Jindal and Parkway Pipeline. The new pipeline will be 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.

"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," said Governor Jindal.

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.

What to read next

Parkway and Thomas Properties merger approved
Parkway Brewing to expand big in Salem, Va.
John Laing Infrastructure agrees five deals with John Laing Group