HollyFrontier Corp. and Holly Energy Partners LP (HEP) are building a rail terminal near HollyFrontier's 100,000-b/d Navajo refining complex in Artesia and Lovington, NM. The 70,000-b/d terminal will connect to HEP’s crude oil pipeline system in southeastern New Mexico, accessing West Texas Intermediate, West Texas Sour, and Western Canadian Select crudes.
Holly expects the terminal to enter service in early-2014.
HEP earlier this month announced plans to expand its crude pipeline system in southeastern New Mexico by as much as 100,000 b/d in response to increased production in the area, with in-service timing for the new capacity also slated for early-2014 (OGJ Online, Mar. 8, 2013). HEP operates about 960 miles of crude oil trunk, gathering, and connection pipelines in West Texas, New Mexico, and Oklahoma, delivering to the Navajo refinery.
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