Kinder Morgan Schedules Mid-November Launch of Florida Ethanol Pipeline

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Researched by Industrial Info Resources (Sugar Land, Texas)--Kinder Morgan Energy Partners LP (NYSE:KMP) (Houston, Texas) has completed testing of a 105-mile, 16-inch-diameter pipeline that will be used to transport denatured ethanol between distribution terminals in Tampa and Orlando, Florida.

The pipeline is part of a $60 million project to improve storage and distribution of ethanol in the area. Kinder Morgan is finalizing mechanical modifications to tanks, truck racks and supporting systems and intends to offer transportation services to customers by mid-November of this year. The existing gasoline pipeline was upgraded with meter-prover seals, pump-main seals, spiral-wound stainless gaskets, pump impellers, main line block valves and new O-rings and instrumentation that are ethanol compatible.

A pipeline inspection gauge is expected to launch for the final stage of cleaning to assure the pipeline is uncontaminated and ready to transport the renewable fuel. The project tests demonstrated the commercial feasibility of transporting ethanol via pipeline compared with the traditional transportation methods of truck, rail and barge transport.

The 650,000-barrel Orlando terminal, which has 15 tanks, completed the tank farm modifications in July in anticipation of the mid-November service date launch and will be the first to offer this type of ethanol transportation. Earlier experiments with transportation of ethanol via pipelines in mixed product pipelines developed several problems from difficulty in maintaining fuel specifications to material failures causing stress, corrosion and cracking.

Ethanol will be delivered from producers to the terminals via pipeline and then blended with gasoline that will be delivered to retail stations by truck.

Industrial Info's Ethanol Database provides a comprehensive outline of all current development activities in the emerging alternative fuels market. This database covers 177 ethanol plants in operation and 530 plants under development. It also covers 145 operational biodiesel plants and 245 biodiesel plants under development.

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