By OGJ editors
HOUSTON, Feb. 22 -- Holly Energy Partners LP (HEP) of Dallas plans to take 25% interest in an intrastate oil pipeline being built by Plains All American Pipeline LP.
The 95-mile pipeline will deliver as much as 120,000 b/d of crude into the Salt Lake City area. It will be owned by a joint venture company with Plains having a 75% interest.
Depending upon final construction costs, HEP plans to buy its share for $22-25.5 million during first quarter 2008 when the pipeline system is scheduled to be fully operational.
HEP and Plains signed a letter of intent and final negotiations have yet to be completed. The oil pipeline will serve various Utah refineries, including Holly Corp.'s 25,000 b/cd Woods Cross refinery.
