DIAMOND SHAMROCK PROJECTS HIKE REFINED PRODUCTS LINE CAPACITY

Diamond Shamrock Inc. (DSI), San Antonio, is near completion of the first of three pipeline projects that will expand its McKee refinery products pipeline system by more than 66,000 b/d.

The company is undertaking the pipeline expansions to increase its flexibility in serving growing refined products markets in Colorado, Texas, and New Mexico.

By April, a 254 mile, 10 in. pipeline is to begin transporting gasoline, diesel and jet fuel from DSI's 125,000 b/cd McKee refinery in the Texas Panhandle to a new 324,000 bbl products terminal in El Paso County, Colo., about 3 miles southeast of Colorado Springs. The new 32,000 b/d pipeline is to be owned wholly and operated by DSI.

The project includes a new pump station each at McKee and a site near Pritchett, Colo., in Baca County.

Other DSI pipeline expansion plans are on tap:

Construction is to start after first half 1994 on another 32,000 b/d, 10 in. pipeline to run 400 miles from McKee refinery to El Paso, Tex.
Crews in early March are to begin welding sections of 10 in. pipeline to be layed in loops along the existing 6 in., 21,000 b/d Amarillo, Tex. Albuquerque, N.M., pipeline owned 50 50 by DSI unit West Emerald Pipe Line Corp. and Phillips Pipe Line Co.

More tentative are plans to extend the 10 in. McKee Colorado Springs products pipeline about 70 miles northward into the Denver area.

Service is to begin about mid 1995 on the McKee El Paso products pipeline. DSI's plans include a products terminal at El Paso about equal in size to the new Colorado Springs terminal. An interconnect also is planned between DSI's El Paso terminal and the Santa Fe Pacific pipeline originating near El Paso that could carry DSI products into Tucson and Phoenix Ariz.

At present, DSI supplies gasoline and diesel fuel to Diamond Shamrock Corner Stores in the El Paso area through exchange arrangements with other refiners and suppliers in southwestern Texas.

About 50 miles of 10 in. loop is to be laid on the Amarillo Albuquerque pipeline, and pumping capacity is to be increased at two of the pipeline's six pump stations. As each 10 in. loop segment is placed in service, segments of 6 in. line will be retired. The looping project will increase capacity of the line by 2,000 b/d, all of which win be owned by West Emerald.

At completion this spring of the Amarillo Albuquerque expansion, West Emerald will own 12,500 b/d of the expanded capacity and Phillips 10,500 b/d.

Earlier this year, DSI and Phillips split Texaco Pipeline Inc's interest in the Amarillo Albuquerque products pipeline, a deal that netted each company about 2,500 b/d of capacity.

When all expansions being planned by DSI are in place, West Emerald's products pipeline system will include about 3,000 miles of pipelines, up from about 2,300 miles. System storage capacity could surpass 3.3 million bbl, up from 2.7 million bbl at existing terminals.