CMS Energy Corp., Marathon Ashland Petroleum LLC, and TEPPCO Partners LP have formed the Centennial Pipeline joint venture to convert a 26-in., 720-mile natural gas pipeline to carry refined products from Longville, La., to Bourbon, Ill.
Each of the companies will own a third interest in the joint venture, which also will build a 24-in., 70-mile spur from TEPPCO's Beaumont, Tex., refined products terminal.
An operator has not yet been selected for the joint venture, and there are no estimates of costs or construction start-up dates.
A specific route for the proposed connection has not yet been selected, officials said.
Company strategies
CMS Panhandle Pipe Line Co. owns the existing gas pipeline, built in 1951, and two other, parallel 30-in. and 36-in. gas lines. The company has filed with the Federal Energy Regulatory Commission to take the gas line out of service.
Conversion of that pipeline to liquid products service should to be completed by the end of 2001, officials said.
That's part of CMS Energy's "strategy of maximizing the use of our existing assets by converting an underutilized gas line to liquids service," said Chris Helms, president of CMS Panhandle.
The new Centennial Pipeline system will pass through portions of Texas, Louisiana, Arkansas, Mississippi, Tennessee, Kentucky, and Illinois.
It will intersect TEPPCO's existing main line near Lick Creek, Ill., where a new 2 million bbl storage terminal for refined petroleum products will be built.
"TEPPCO's ability to serve our customers will be enhanced by providing additional petroleum products to the Midwest market, where supplies have been getting tighter," said William L. Thacker, chairman and CEO of Texas Eastern Products Pipeline Co., general partner of the TEPPCO limited partnership.
"It will alleviate a bottleneck in TEPPCO's current system by combining our US Gulf Coast supply capabilities and Midcontinent delivery network with the mid-system capacity of the joint venture," he said.
TEPPCO has one of the largest common carrier pipeline systems for refined products and LPG in the US.
"The new project will enhance our logistics presence in the Midwest, reaching new customers while continuing to provide outstanding service for our existing customers," said J.L. (Corky) Frank, president of Marathon Ashland Petroleum, which is 62% owned by Marathon Oil Co.
