Seaway Pipeline Conversion Underway; ARCO, Phillips Contribute Assets

abarrelfullabarrelfull wrote on 06 Aug 2012 12:34

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14 December 1995

HOUSTON — The Seagas pipeline was released from natural gas transportation service on 7 December and is being converted to crude oil service, it was announced today by ARCO Pipe Line Company (APL), operator of the Seaway pipeline project.

Conversion of the system is on schedule for startup by the first quarter of 1996. Procurement and design engineering is substantially complete and construction work has begun at various locations along the system.

Release of the Seagas pipeline from natural gas service by subsidiaries of Phillips Petroleum Company (NYSE: P) also clears the way for ARCO (NYSE:ARC) and subsidiaries of Phillips to contribute the assets to Seaway Pipeline Company, effective today.

In addition to the Seagas pipeline, Seagas is contributing its Freeport II Dock Facility and a portion of the Jones Creek Tank Farm — both in the Freeport, Texas area.

ARCO is contributing its Texas City-Cushing system, consisting of a dock facility and tank farm at Texas City, Texas, the company's mainline crude oil pipeline extending from Texas City to Cushing, Okla, and tank farm assets located at various pump stations between those points.

The Seaway project, a partnership between subsidiaries of ARCO and Phillips, will be one of the nation's largest carriers of crude oil into the U.S. Mid-Continent from the Gulf Coast, with an ultimate capacity of 800,000 barrels per day.

On a related matter, APL has confirmed it is working with a number of refiners and producers on commercial arrangements pertaining to Seaway and anticipates having a number of throughput commitments in place prior to startup.

APL, headquartered in Houston, is a unit of ARCO Transportation Company, the marine and pipeline division of Los Angeles-based ARCO.

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