The company also announced that it has awarded Liberty's engineering to Trigon-Sheehan, LLC, a Denver-based engineering, procurement and construction firm with offices located in Tulsa, Oklahoma. The project is scheduled to be completed before the end of 2005.
"The 20-inch pipeline will handle more than 200,000 barrels of crude per day and will provide lower PADD II refiners increased access to a continuous and reliable supply of deepwater and Gulf Coast crudes," said Tom Kivisto, Seminole president and chief executive officer. "We believe Liberty will help relieve the expected pressure on existing pipeline infrastructure as new deepwater production comes online and will play an important role in reducing lower PADD II refiners' dependence on long-haul foreign crude supply. It also represents an excellent growth opportunity for Seminole's business."
Deepwater production is projected to increase steadily through 2006 peaking at 1.9 million barrels of oil per day, according to a report released in May by the Minerals Management Service of the U.S. Department of the Interior.
Liberty's southern terminus, located in Longview, Texas, will have the capability to receive from several existing common carrier pipelines which have capacity from the Gulf Coast. This will create a transportation corridor with access to multiple offshore Gulf of Mexico crude oil discoveries including Mars, Poseidon, Eugene Island and HLS. It also has access to strategic terminals such as St. James and LOOP which offer long-haul foreign oil supplies as well as domestic crudes such as LLS. The Liberty connection provides a means to eliminate weather-related delays now experienced by PADD II buyers of waterborne barrels.
Liberty will terminate on the north end at Seminole's Cushing Terminal which has delivery capability to all major pipelines and refiners in the area, and it is tied directly and indirectly to more than 3.0 million barrels of storage capacity.
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