Texaco slates gulf-Midcontinent pipeline

Texaco Products Pipeline [ bytes] Texaco Pipeline Inc. plans to develop a major new network of pipelines and terminals to transport gasoline, diesel, and jet fuels from the Texas Gulf Coast to Midcontinent markets. Incorporating existing and planned facilities, the completed system will have more than 200,000 b/d capacity of products throughput to terminals in northern and western Texas, Oklahoma, and Kansas. Texaco plans to spend about $200 million for new and expanded facilities.

June 30, 1997

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Texaco Products Pipeline [ bytes]

Texaco Pipeline Inc. plans to develop a major new network of pipelines and terminals to transport gasoline, diesel, and jet fuels from the Texas Gulf Coast to Midcontinent markets.

Incorporating existing and planned facilities, the completed system will have more than 200,000 b/d capacity of products throughput to terminals in northern and western Texas, Oklahoma, and Kansas.

Texaco plans to spend about $200 million for new and expanded facilities.

Texaco is in exclusive negotiations with Koch Pipeline Co. LP and Koch Refining Co. LP to form a joint venture to own the system.

Texaco also signed a long-term products supply agreement with Pride Cos. LP, Abilene, Tex. Products will be delivered to Pride at its existing Abilene and Aledo, Tex., terminals and possibly to future additional locations. Pride will continue to distribute products through its existing network, including its pipeline and terminal at San Angelo, Tex.

The new Texaco system will compete with a new common carrier system-also involving new and existing facilities-that Phillips Pipe Line Co. and Seaway Pipeline Co. are developing to deliver gasoline and distillates to Midcontinent markets. That project is slated for start-up early in 1998 (OGJ, Feb. 17, 1997, p. 28).

Work is now under way on the system, the backbone of which will be an existing 1,300 mile common carrier pipeline.

Conversion of existing pipelines will provide transportation from Houston to Corsicana, Wichita Falls, Abilene, Big Springs, and Midland, Tex. Proposed new pipeline connections will provide service north to Tulsa, Oklahoma City, and Duncan, Okla.; El Dorado and Kansas City, Kan.; and Denver.

The planned joint venture with Koch would also entail laying a 275-mile, 12-in. pipeline from Midland to El Paso. Additional connections on northern and western legs also are likely.

As part of the project, Texaco earlier purchased an existing 16-in. pipeline from Corsicana to Midland from Mobil Corp. through an asset swap in May.

Texaco's existing East Houston station will be the point of origin for products from Houston area refineries and bulk terminals and, via pipeline connections, from Port Arthur, Beaumont, and Corpus Christi, Tex., refineries.

Texaco Refining & Marketing Inc. has committed to take 25,000-30,000 b/d of its product requirements from the system.