Longhorn Partners Pipeline (LPP) is advancing a pipeline plan that will help Houston area refiners serve products markets in the U.S. Southwest and Mexico.
LPP proposes to develop a products pipeline link between Houston area refiners and El Paso, Tex. The company said its project will be the first direct products pipeline link between the two cities.
Shippers using the nearly 800 mile, mainly 18 in. pipeline system would be able to reach markets in South Central and West Texas, New Mexico, Arizona, and northern Mexico. Upon completion about yearend 1996, the system would be able to handle 100,000-120,000 b/d of refined products.
Tariff for spot shippers on the system is to be 5/gal. But LPP said it will allow discounted tariffs for shippers signing long term contracts before next Sept. 15.
KEY ELEMENTS
Among key developments, LPP agreed in a letter of intent to buy 550 miles of pipeline and related assets from Exxon Pipeline Co. Included in the purchase are:
- 450 miles of 18 in. line from Baytown, Tex., east of Houston on Galveston Bay; and Crane, county seat of Crane County, West Texas.
- 100 miles of 6 and 8 in. line between Crane and Andector, Tex., a small town on the Andrews-Ector county line, west of Odessa.
LPP wants to reverse the pipeline flow to south-north from Houston to Crane.
It also proposes to lay about 240 miles of 18 in. line from Crane to a terminal to be built at El Paso. The company intends to build a products terminal at Austin that would allow Houston area refiners to reach markets there and in San Antonio.
LPP has retained Fluor Daniel to provide engineering, procurement, and construction services.
GATX Terminals Corp. is to provide shippers with origin terminal services at Houston.
A shipper agreeing in a 5, 7, 10, or 15 year contract to transport at least 10,000 b/cd of products on LPP's Baytown-El Paso system will pay a preferential tariff during the life of the agreement. LPP also will guarantee I day deliveries to shippers who qualify.
WHO'S WHO
LPP is a partnership of Axis Gas Corp., Dallas, and Beacon Energy Investment Fund LP, New York.
Axis was formed in 1990 to own and operate pipeline systems for products transportation and gas gathering, processing, and transmission. Beacon is a $658 million fund focused on strategic investments in energy.
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