Valero Energy Corp. (NYSE: VLO) said on July 12 it bought Kinder Morgan Inc.'s (NYSE: KMI) 50% stake in Parkway Pipeline LLC, previously a joint venture between the two companies.
The move will give Valero increased access to the eastern U.S. by connecting the pipeline to Colonial Pipeline Co.'s system that runs from Houston to New York Harbor.
The Parkway system currently is a 110,000 barrels per day (bbl/d) 16-inch products pipeline that runs from Valero's refinery in Norco, La., to Kinder Morgan's Plantation Pipeline System in Collins, Miss. The line could be expanded to more than 200,000 bbl/d, Valero said.
Valero funded the acquisition with cash, and did not disclose the price it paid.
RELATED: Kinder Morgan Sells Half Of Pipeline To Best Customer For $1.5 Billion
Recommended Reading
TGS, SLB to Conduct Engagement Phase 5 in GoM
2024-02-05 - TGS and SLB’s seventh program within the joint venture involves the acquisition of 157 Outer Continental Shelf blocks.
Going with the Flow: Universities, Operators Team on Flow Assurance Research
2024-03-05 - From Icy Waterfloods to Gas Lift Slugs, operators and researchers at Texas Tech University and the Colorado School of Mines are finding ways to optimize flow assurance, reduce costs and improve wells.
Drilling Tech Rides a Wave
2024-01-30 - Can new designs, automation and aerospace inspiration boost drilling results?
Exclusive: Halliburton’s Frac Automation Roadmap
2024-03-06 - In this Hart Energy Exclusive, Halliburton’s William Ruhle describes the challenges and future of automating frac jobs.
Fracturing’s Geometry Test
2024-02-12 - During SPE’s Hydraulic Fracturing Technical Conference, industry experts looked for answers to their biggest test – fracture geometry.