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SEAWAY PIPELINE EXPANDS CAPACITY TO MEET DEMANDS OF REFINERS FOR SUMMER SEASON

HOUSTON, April 23 /PRNewswire/ -- The Seaway Pipeline Company announced that it expects to have additional capacity on-line early in May in time to meet the higher summer demand of refineries in the mid- continent area.

The Seaway project is a partnership between subsidiaries of ARCO (NYSE: ARC) and Phillips Petroleum Company (NYSE: P). ARCO Pipe Line Company operates the system.

"Our schedule calls for us to have the 30-inch pipeline from Freeport, Texas to Cushing, Okla. available for service by May 1, bringing the initial capacity of the system to 430,000 barrels per day," said Karen K. Caldwell, president of ARCO Seaway, Inc., and project manager for the partnership. "The oil will move north to transportation hubs in the Cushing area for use by refineries in several mid-continent states," she said.

Construction and improvements have been completed on the 42-inch crude oil pipelines from docks at Freeport to the Jones Creek tank farm and pumping station seven miles north. Jones Creek has a storage capacity of 1.6 million barrels of crude oil. Dredging and berth widening, which will allow ships as large as 150,000 deadweight tons to call at Freeport, have also been completed.

Crude oil from ocean-going tankers is currently being transported from Texas City to Cushing in a 20-inch pipeline to help meet current demand of refineries serving the Midwest. The Texas City to Cushing line has a design capacity of 160,000 barrels per day. The Seaway system expansion will employ a new 30-inch line to increase capacity an additional 270,000 barrels per day. Ultimate capacity of the Seaway system is 800,000 barrels per day.

Waterborne crude will help offset declines from West Texas and Oklahoma fields as well as Alaska North Slope crude oil currently heading for the mid-continent.

"Seaway is the answer to the need for timely delivery of refinery stocks," Caldwell said. "In addition, the system will offer the ability to segregate barrels, providing customers with feedstock integrity. We will also offer customized blending services to our customers."

Caldwell said the Seaway system "has the flexibility to transport the whole range of oils that our customers will need in their refineries, from condensates and other light, sweet crudes to heavy crude oil such as 17 gravity from Venezuela as well as everything in between."

The Seaway system is one of the nation's largest carriers of crude oil into the mid-continent region from the Gulf Coast. The partnership was formed early in 1995 to expand pipeline capacity in one of the most important crude oil corridors in the nation. ARCO and Phillips contributed pipeline, tankage and dock assets to the joint venture and also made new investments to complete the system. Seaway includes more than 1,100 miles of pipeline, two world-class docks at Freeport and Texas City and more than seven million barrels of associated tankage.

ARCO Pipe Line Company, headquartered in Houston, is a unit of ARCO Transporation Company, the pipeline and marine division of Los Angeles- based ARCO.
 -0- 4/23/96


/NOTE TO EDITORS: For a menu of ARCO's news releases or to retrieve a specific release, visit our Website at http://www.arco.com on the Internet./

/CONTACT: John Thom, 310-590-4670, or Albert Greenstein, 213-486-3384, both of ARCO/

(ARC P)

CO: ARCO; Phillips Petroleum Company ST: Texas, Oklahoma, California IN: OIL SU:

AW-BB -- LATU017 -- 9300 04/23/96 11:01 EDT
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Publication:PR Newswire
Date:Apr 23, 1996
Words:566
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