Kinder Morgan's California renewable diesel hubs begin commercial operations

Kinder Morgan has begun full commercial operation of both its Southern and Northern California renewable diesel hubs, the company said in a statement.

"We are very pleased to be advancing California's climate goals through our Southern and Northern California RD hubs," Kinder Morgan President of Products Pipelines Dax Sanders said in the statement, which was released late April 3.

"Pipelines continue to be the safest and most cost-efficient mode of long-haul transportation for liquid fuels."

The Southern California hub provides up to 20,000 b/d of blended diesel across two inland track racks. It has been delivering RD to San Diego since the beginning of February 2023 with deliveries to Colton, California.

The Southern California hub connects marine supplies of RD coming into the Ports of Los Angeles and Long Beach to the Los Angeles market via the truck rack at SFPP's Carson Terminal and to KMI's SFPP pipeline system for delivery to the Inland Empire and San Diego areas.

The Northern California hub is just now beginning commercial operation. The hub provides 21,000 b/d of RD via the SFPP northern pipeline system from the San Francisco Bay area to Kinder Morgan's Bradshaw, Fresno and San Jose terminals.

Kinder Morgan said it capitalized on existing infrastructure for the Northern California hub and it has the potential for phased capacity expansions.

US West Coast renewable diesel prices have been softening as more barrels make their way into California, taking advantage of the state's Low Carbon Fuel Standard credit. Platts, part of S&P Global Commodity Insights, assessed USWC RD with credits at $5.24/gal for the week ended March 31, down from $7.52/gal for week ended April 1, 2022.