Ultramar Diamond Shamrock completes pipeline, reopens terminal

Ultramar Diamond Shamrock Corp., San Antonio, has completed its Colorado Springs pipeline expansion project and reopened its Arkansas City, Kan., asphalt terminal. The increased throughput capacity will allow UDS greater access to the growing and sometimes-tight Denver and Rocky Mountain gasoline and diesel markets from its 165,000 b/d McKee refinery.


Ultramar Diamond Shamrock Corp., San Antonio, has completed its Colorado Springs pipeline expansion project and reopened its Arkansas City, Kan., asphalt terminal.

Expansion of the company's McKee, Tex.-to-Colorado Springs finished products pipeline will allow full utilization of the line's 52,000 b/d capacity. Prior to the $9 million project, which included the addition of three pumping stations, the line was limited to just 32,000 b/d.

The increased throughput capacity will allow UDS greater access to the growing and sometimes-tight Denver and Rocky Mountain gasoline and diesel markets from its 165,000 b/d McKee refinery.

UDS operates a 27,000 b/d refinery in Denver in tandem with the McKee facility. The pipeline expansion will allow for greater flexibility and optimization of operations between the two refineries, says UDS.

The company's reopened Arkansas City asphalt terminal will handle asphalt from its Ardmore, Okla., and McKee refineries, which, combined, produce more than 6 million bbl/year of asphalt. The fully automated facility features rail car and truck unloading and has the capacity to store 200,000 bbl of performance-grade asphalt.

The terminal was acquired as part of UDS's acquisition of the assets of Total Petroleum North America in late 1997. It has been closed since 1998.

"Reopening this facility is a first step in UDS's plans to grow its Midcontinent asphalt presence and gives the company a transportation advantage," said the firm.

UDS Chairman and CEO Jean Gaulin said, "Both of these projects are important steps in our efforts to grow earnings and returns around our Midcontinent refining, marketing, and logistics systems. We have quality assets strategically located [with access] to good supplies of crude oil and growing finished product markets. The pipeline expansion and terminal reopening are strategically important because they will allow us to better utilize our assets and extend our reach into these growing markets."

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