Holly completes link in refinery expansion

By OGJ editors
HOUSTON, June 2 -- Holly Corp. has completed a third 65-mile pipeline to carry intermediate products between segments of the New Mexico refinery it is expanding and upgrading to handle heavy oil.

Holly Energy Partners LP, 41% owned by Holly Corp., has acquired the 16-in. pipeline, which connects distillation and vacuum units in Lovington, NM, with the main Navajo Refining Co. LP facility in Artesia. The purchase price was $34.2 million.

Holly Corp. is expanding crude capacity of the refinery to 100,000 b/d from 85,000 b/d in a project that also is adding upgrading capacity, including a 15,000-b/d hydrocracker (OGJ, Apr. 28, 2008, p. 30).

The upgraded and expanded refinery will be able to run as much as 40,000 b/d of heavy crude.

The project includes a new 70-mile pipeline connecting Lovington with one of two 16-in. Centurion Pipeline LP lines between Cushing, Okla., and Slaughter, Tex., reversed to carry heavy crude.

Another part of the project is a new 37-mile pipeline linking Holly Energy's Artesia gathering system with Lovington.

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