Marathon Explores Midwest To Gulf Coast Pipeline Reversal Project

July 2012, Vol. 239 No. 7

Marathon Petroleum Corp. is exploring reversing a major pipeline to bring oil from the Midwest to the Gulf Coast refining belt, according to a Rigzone report.

Changing direction of the 1.2 MMbpd Capline pipeline would be the second major pipeline reversal (following Seaway) that could transport a glut of crude oil in the Midwest to the Gulf Coast, where it can be refined into petroleum products like gasoline or easily transported elsewhere.

Marathon is part owner of Capline, which brings oil from Louisiana to Illinois. The pipeline has been little utilized as crude from Canadian oil sands and U.S. Midwest shale formations pour into the oil storage hub in Cushing where there are few ways to move the crude out of the region.

Plains All American Pipeline is the majority owner, while Royal Dutch Shell operates the 630-mile pipeline.