Holly Energy Partners is proceeding with expansion of its crude oil transportation system in southeastern New Mexico in response to increased crude oil production.
The expansion will provide additional pipeline takeaway capacity to either common-carrier pipeline stations for transportation to major crude oil markets or to Holly Frontier’s New Mexico refining facilities.
HEP will convert an existing refined products pipeline to crude oil service, construct several pipeline segments, expand an existing pipeline, and build truck unloading stations and crude storage capacity. Excluding the value of the existing pipeline to be converted, total expenditures are expected to be $35-40 million. HEP estimates the project will provide increased capacity of up to 100,000 bpd across its system and anticipates it will be in service no later than early 2014.