Houston-based Kinder Morgan Inc (NYSE:KMI) will invest $90 million in building a pipeline for oil refiner Phillips 66's refinery in Texas, the two companies said on Thursday.
Under the deal signed between the two companies, Morgan will build the 27-mile, 12--inch diameter pipeline from it Eagle Ford formation to Phillip's refinery in Texas. This will help in the transportation of crude and condensate to the refinery.
Oil refiner Phillips 66 will get a "significant portion" of the new pipeline's initial capacity of 30,000 barrels per day, which will be expandable to 100,000 barrels per day, the joint statement from the companies said.
The project also includes constructing a truck offloading facility and three new storage tanks at Morgan's Texas facilities.
The construction of the pipeline is expected to start in the fourth quarter of this year, subject to environment and other regulatory approvals.
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The project is expected to be immediately cash accretive to Kinder Morgan's unit holders, the company said.
Meanwhile there was news of a different nature emerging from Hartford with United Technologies Corporation(NYSE:UTX) laying off 150 salaried employees at its UTC Aerospace Systems Division.
"When necessary, we make staffing adjustments required to ensure we remain competitive and manage our cost structure," UTC Aerospace Systems spokesman Matthew Perra said.
The layoffs are part of the planned restructuring by the company to reduce the numbers of hourly workers on its payroll.
The pink slips will leave about 3,900 workers in Windsor Locks, where the company also is paring down the number of hourly workers. It had said year that it planned to eliminate 300 positions in manufacturing operations in Connecticut.