Exxon Pipeline Company and Amoco Pipeline Company to Join Longhorn Pipeline Partnership

abarrelfullabarrelfull wrote on 07 Aug 2012 08:53

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14 July 1997

Longhorn Partners Pipeline, LP today announced that a Letter of Intent has been executed for Exxon Pipeline Company and Amoco Pipeline Company to join the partnership in exchange for contributions of assets and equity.

Exxon Pipeline and Amoco Pipeline will be joining Longhorns existing limited partners, Williams Energy Group, Tulsa, Oklahoma; the Beacon Group Energy Investment Fund, LP, New York; and Axis Gas Corporation, Dallas, Texas.

The Letter of Intent specifies the finalization of definitive agreements including the acquisition by Longhorn of an existing 18 crude oil pipeline running 450 miles between Crane, Texas, and Houston. The line will be modified to become a products pipeline and will be extended to El Paso providing direct access to new markets for Gulf Coast refineries. Construction of the 250-mile pipeline extension is anticipated to begin by yearend with an initial capacity of 80,000 barrels per day and a potential maximum capacity reaching 225,000 barrels per day.

Longhorn intends to aggressively pursue regional market opportunities along the route. The agreement is seen as an important first step in providing access for Gulf Coast shippers to growth areas in the Southwestern US.

Opportunities beyond Texas could include additional pipeline construction and connections to other pipelines accessing growing markets in Phoenix and Tucson, in Arizona, and Albuquerque, New Mexico, and Northern Mexico.

On behalf of Longhorn, I am pleased to welcome our new partners to the alliance, said Carter Montgomery, Longhorns President and Chief Executive Officer. By finalizing the partnership agreements, the synergy of this group of dynamic industry leaders will enable Longhorn to become the premier supplier of choice for the Southwestern market. In fact, Longhorn has already received Letters of Intent for throughput from multiple shippers to make use of this new transportation opportunity.

Longhorn is eager to move forward with this strategic project,: said O D Harris, Vice President of Asset Management and Operations. Right-of-way acquisition has begun and a terminal site in El Paso has been acquired. The extended pipeline should be operational in the second half of 1998.
The partnerships General Partner will be Longhorn Partners GP, LLC It is anticipated that Williams will be selected by the partnership to be contract operator of the pipeline.

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