Tulsa Based Energy Company Plans a New Crude Oil Pipeline to Supply PADD II Refiners

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). SemGroup (Tulsa, Oklahoma) has announced plans to construct the Liberty Pipeline, which will allow Gulf Coast & Gulf of Mexico crude oil to be transported form Longview, Texas to the company's storage terminal in Cushing, Oklahoma (PEC 01009764). The 280-mile 20" diameter pipeline will have an initial crude oil capacity of just over 200,000 barrels per day. Support facilities will include a new pump station near Longview, Texas, utilizing either one or two 4,000 horsepower electric-drive pump units (PEC 01009766).

Trigon-Sheehan Engineers & Constructors (Denver, Colorado) was awarded a cost estimate contract for the $150 million project and is awaiting a final production decision from SemGroup, which is expected in June 2004 to begin the main engineering work. SemGroup expects to begin construction on the Liberty Pipeline in May of 2005, with an in-service completion date targeted for March of 2006.

If constructed, the new pipeline is designed to provide PADD II refiners increased access to a more reliable supply of crude sourced from the Gulf Coast and deep Gulf of Mexico production areas in which production is expected to peak in 2006 at 1.9 million barrels per day.