Seminole’s Liberty pipeline will move crude from Gulf of Mexico to Oklahoma

Petroleum News

The Seminole Group said Nov. 12 that it will build a $150 million, 280-mile pipeline, the Liberty Crude Oil Pipeline, to move Gulf Coast and Gulf of Mexico outer continental shelf crude oil from Longview, Texas, to the company’s terminal in Cushing, Okla.

“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.” Deepwater production is projected to increase steadily through 2006, peaking at 1.9 million barrels of oil per day, Seminole said, and the Liberty pipeline will connect with existing common carrier pipelines, creating a transportation corridor with access to multiple offshore Gulf of Mexico crude oil discoveries, including St. James and Mars, Poseidon, Eugene Island and HLS.

Liberty will also access strategic terminals such as St. James and LOOP, with long-haul foreign oil supplies as well as domestic crude. Seminole said the Liberty connection will provide “a means to eliminate weather-related delays now experienced by PADD II buyers of waterborne barrels. The Cushing terminal has delivery capability to all major pipelines and refiners in the area, the company said, and is tied directly and indirectly to more than 3 million barrels of storage capacity.