November 12, 2003 -- Tulsa, Oklahoma – The Seminole Group, L.P. announced today that it intends to build a 280-mile pipeline that will enable Gulf Coast and Gulf of Mexico Outer Continental Shelf crude oil to move from Longview, Texas, to the company’s terminal in Cushing, Oklahoma. The $150 million project is named the Liberty Crude Oil Pipeline.
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 longhaul 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.
The Seminole Group provides gathering, transportation, marketing and hedging services for crude oil, natural gas liquids and refined products, and natural gas producers in the United States and Canada. The privately held company is headquartered in Tulsa, Oklahoma. For information about The Seminole Group, visit the Web site: www.TheSeminoleGroup.com
Contact Information:
Frank Panzer
The Seminole Group, L.P.
918.388.8109