HOUSTON, May 31 (Reuters) - Kinder Morgan Energy Partners LP shelved a $2 billion plan to convert a natural gas pipeline to carry cheap West Texas crude to Southern California, citing lack of shipper interest.
"We don't believe in the concept of build it and they will come," Mark Kissel, a Kinder Morgan executive, said on Friday. "We stated at the outset that we would not move forward with the project without customer support."
The Freedom Pipeline project involved converting a 740-mile (1,191 km) natural gas pipeline to move crude oil from the Permian Basin to refiners in Southern California that otherwise rely on pricey imports.
However, the company said it did not garner enough shipper interest to justify the investment.
So the "..refiners in So Cal.." would rather have "..pricey imports.." of natural gas than cheaper west texas crude to refine? What, no demand in So Cal for gasoline? Are they all switching to natural gas cars? Or is California still hurting from the slow economy? If that's the case, I don't blame KMP at all. Too bad, would have created lots of jobs.