Holly, Sinclair to build products pipeline in Utah

July 10, 2007
Holly Corp. and Sinclair Transportation Co. announced plans to jointly build a products pipeline, which will extend from Salt Lake City to Las Vegas.

By OGJ editors
HOUSTON, July 10 -- Holly Corp. and Sinclair Transportation Co. announced plans to jointly build a products pipeline, which will extend from Salt Lake City to Las Vegas. The project, called the UNEV Pipeline, also includes construction of associated terminal facilities in Cedar City, Utah, and North Las Vegas.

The $300 million pipeline system will be a 430-mile, 12-in. line with an initial capacity of 62,000 b/d, expandable to 120,000 b/d. It will serve refineries and shippers along its route and interconnect to the Pioneer Pipeline.

The UNEV Pipeline is scheduled for completion by yearend 2008. Orders for pipe and terminal tankage have been placed and construction bid packages for the project are expected to be delivered to contractors next month. Permits for construction of the UNEV Pipeline are expected by April 2008.

Holly and Sinclair have signed a memorandum of understanding (MOU), which is subject to the execution of definitive agreements, stipulating that interest in the project will be held 75% by Holly (operator) and 25% by Sinclair.