Kinder Morgan Inc. received Federal Energy Regulatory Commission (FERC) approval regarding the rates, terms and conditions of service for the proposed Palmetto Pipeline, the company said May 7. The approval came May 1, the company added.

Palmetto will transport petroleum products from Louisiana, Mississippi and South Carolina to parts of South Carolina, Georgia and Florida.

Baton Rouge, La., Collins and Pascagoula, Miss., and Belton, S.C., are cities where the petrochemicals will ship from. North Augusta, Ga., and Jacksonville, Fla., are where they will end up.

Palmetto will handle 167,000 barrels per day of capacity.

Expansion capacity will be leased from Plantation Pipe Line Co., which is between Baton Rouge and Belton. A new 360-mile pipeline from Belton running to Jacksonville will also be built for the system.

“We are pleased to receive FERC approval, which allows us to advance the development of this important infrastructure project supporting distribution of domestically produced petroleum products,” Ron McClain, president of Kinder Morgan Products Pipelines.

“This milestone brings the company one step closer to its goal of delivering low-cost additional supplies of refined petroleum products and denatured fuel ethanol to pipeline-constrained markets in the southeastern United States.”

Kinder Morgan said southeastern consumers could save as much as 6 cents per gallon when Palmetto is in service.

Houston-based Kinder Morgan Inc. is North America’s largest energy infrastructure company.