Seaway conversion moves Oklahoma gas to Texas plant

Purchase and conversion to natural gas transmission of the Seaway crude oil pipeline was an effort to capitalize on the line's location to gather raw gas in Oklahoma and Texas for use as fuel at Phillips Petroleum Co.'s Sweeny, Tex., refinery. The Seaway pipeline was planned during the early 1970s as a major midwest oil artery. The purpose of the 30-in., 500-mile pipeline, extending from Jones Creek, Tex., to Cushing, Okla., was to feed inland midcontinent refineries with lower-cost imported oil. Owned by a consortium of seven companies, the pipeline began operation in mid-1976 and continued almost uninterrupted until 1982, at which time excess U.S. refining capacity, coupled with reduced oil imports, resulted in the closing of several large inland refineries. These refinery closings, along with reduced crude oil import demands, caused the Seaway pipeline to become inactive for several long periods of time. Since the forecast use of the pipeline was not favorable, the pipeline and its terminals were put up for sale.