Holly Energy Partners begins initial evaluation of two new proposed pipelines in US

US-based Holly Energy Partners (HEP) has entrusted URS to undertake the initial round of engineering, routing and cost assessment of two new proposed pipelines in US.

Under the plan, the first proposed 50 mile line will be between Cushing, Oklahoma, and the Tulsa, Oklahoma, refinery complex, which is owned by Holly Refining & Marketing – Tulsa (HRM Tulsa).

The 20in intrastate crude oil pipeline will transport domestic and Canadian crude oil sourced from Cushing to HRM Tulsa’s 125,000 barrels per day facility with a safe and reliable method.

Once the pipeline begins operation it will allow transportation of a significant amount of heavy Canadian and sour crude oil.

Pipelines owned by Sunoco Logistics and Magellan Pipeline Company are currently being used to transport crude oil processed at HRM Tulsa’s facility.

The second 8in interstate petroleum products pipeline will cover 100 miles between Cheyenne and the Wyoming refinery, which is owned by Frontier Refining.

With a total 52,000 barrels per day capacity, the Frontier Refining refinery can processes about 35,000 barrels per day of heavy Canadian crude oil and is a major supplier of petroleum products to the Denver market.

The second pipeline project will also include development of a new petroleum products terminal in North Denver.

Frontier Refining currently supplies its petroleum products from Cheyenne and Wyoming refinery to Denver on the Rocky Mountain Pipeline’s products line, which is owned by Plains All-American.

HEP said that once primary engineering and detailed project cost assessments are completed, it can consider whether to continue with these projects in the second quarter of 2013.

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Image: Holly Energy Partners has entrusted URS to undertake initial round of engineering, routing and cost assessment of two new proposed pipelines in the US. Photo: Courtesy of Wilfra.