Texaco Trading and Transportation Inc. announces 1,300 mile refined product pipeline system.DENVER--(BUSINESS WIRE)--June 20, 1997--
Texas pipeline acquired; Product supply contract signed; TTTI TTTI Technical Teachers' Training Institute and Koch negotiating ownership joint venture
Texaco Trading and Transportation Inc. (TTTI), a wholly-owned subsidiary of Texaco Inc., today announced that it and its subsidiary, Texaco Pipeline Inc., will build, own and operate a new system of pipelines and terminals to transport gasoline, diesel and jet fuels from the Texas Gulf Coast to terminals at numerous destinations in northern and western Texas (including El Paso El Paso (ĕl pă`sō), city (1990 pop. 515,342), seat of El Paso co., extreme W Tex., on the Rio Grande opposite Juárez, Mex.; inc. 1873. ), Oklahoma and Kansas. When complete, the system will have a combined capacity of more than 200,000 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. (BPD).
Work has begun on the system with the following developments:
- Purchase of an existing 16-inch pipeline from Corsicana, to Midland, Texas Midland is the county seat of Midland CountyGR6 located on the Southern Plains of the western area of the U.S. State of Texas. As of the 2006 U.S. Census estimate, the city had a total population of 102,073. , has been completed.
- TTTI and Koch Pipeline Company, L.P. and Koch Refining Company, L.P., have entered into exclusive negotiations to form a joint venture that will own the new refined products system.
- A long-term product supply agreement with Pride Companies, L.P. (Pride), in central Texas has been executed.
- Texaco Refining and Marketing Inc., also a wholly-owned subsidiary of Texaco Inc., has committed to take 25,000 to 30,000 BPD of product requirements from the system.
The backbone of the new system, which is scheduled to begin operations in January 1998, will be a 1,300 mile common carrier pipeline. Conversion of existing pipelines will provide transportation from Houston to Corsicana, Wichita Falls Wichita Falls, city (1990 pop. 96,259), seat of Wichita co., N Tex., on the Wichita River; inc. 1889. The city's name comes from the Wichitas and from the falls that have since been reduced to an area of rapidly flowing water in the Wichita River. , Abilene, Big Springs and Midland, Texas. Proposed new pipeline construction will allow connections north to service Tulsa, Oklahoma Tulsa is the second-largest city in the state of Oklahoma and 45th-largest in the United States. With an estimated population of 382,872 in 2006, it is the principal municipality of the Tulsa Metropolitan Statistical Area, a region of 897,752 residents projected to City, and Duncan, Okla., El Dorado El Dorado, legendary country of South America
El Dorado (ĕl`dərä`dō, –rā`–) [Span.,=the gilded man], legendary country of the Golden Man sought by adventurers in South America. , Kan., Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). and Denver. The planned joint venture with Koch also would provide for a new 275 mile, 12-inch pipeline from Midland to El Paso. Connections to other pipelines on both the northern and western legs are anticipated.
Arthur A. Nicoletti, President of TTTI, said, "Consistent with our strategic growth objective, this project represents another significant expansion of our existing products pipeline system. It will provide economical transportation services from the Gulf Coast's large refining and import centers to various inland markets."
TTTI's existing East Houston Station will be the origin point for products from Houston area refineries and bulk terminals and, through pipeline connections, from the Port Arthur/Beaumont and Corpus Christi, Texas Corpus Christi is a coastal city and the county seat of Nueces CountyGR6 in the U.S. state of Texas. It is part of the region known as South Texas. refining centers.
Under the supply agreement between TTTI and Pride, products will be delivered to Pride at its existing terminals at Abilene and Aledo, Texas, and possibly at additional future locations. Pride will continue to distribute these products through its existing network, including its pipeline and terminal in San Angelo, Texas San Angelo is a city in and the county seat of Tom Green CountyGR6, Texas, United States. It is also the principal city of the "San Angelo, Texas Metropolitan Statistical Area" that includes all of Irion and Tom Green county. . Pride CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Brad Stephens said, "We are very pleased to obtain this long term, stable supply for Pride's existing facilities which will serve our marketing needs well into the future."
Negotiations with the Koch affiliates continue toward forming pipeline and terminal joint ventures through a combination of asset and cash contributions. "We believe this products system provides tremendous growth opportunities," said Bill Caffey, Executive Vice President for Operations for Koch Industries, Inc., parent company to Koch Refining and Koch Pipeline. "We continually pursue opportunities to expand our capabilities and better serve customer needs."
Nicoletti concluded, "We are converting existing assets to uses which will provide higher value to our customers and, consequently, to our shareholders."
Note to Editors: A map of the new products pipeline system is available upon request.
Texaco - Linda Padon - (303) 793-4414 Koch - Jay Rosser - (316) 828-7462 Pride - George Percival - (915) 674-8000
CONTACT: Jim Swords