The expansion will enhance the capacity of 27-mile, 12in diameter lateral pipeline from 30,000 barrels per day (bpd) to 100,000 bpd.
The company will add new pumps and an additional 120,000-barrel storage tank to its Wharton Pump Station in Wharton County, Texas.
It will also enhance the truck offload capabilities at its DeWitt Station in DeWitt, County, Texas, in order to facilitate the increase in capacity.
KMP Products Pipelines president Ron McClain said the expansion will help Phillips 66 to move more crude and condensate from the Eagle Ford shale to their refinery in Sweeny.
"This expansion further demonstrates the strategic importance of KMCC and its role in transporting Eagle Ford product to markets on the Texas Gulf Coast," McClain added.
The company’s crude or condensate pipeline, which started service in June 2012, transports crude or condensate from the Eagle Ford shale to the Houston Ship Channel by 65 miles of new-build construction and 113 miles of converted natural gas pipeline.
Kinder Morgan Energy Partners operates about 80,000 miles of pipelines and 180 terminals.
The pipelines transport natural gas, gasoline, crude oil and CO2, while terminals store petroleum products and chemicals, as well as handle products such as ethanol, coal, petroleum coke and steel.
KMI has general partner interests in KMP and El Paso Pipeline Partners, while limited partner interests in KMP and EPB, as well as shares in Kinder Morgan Management.
