The Seagas pipeline

The new Seagas gas pipeline system, extending from Cushing, Okla. to Old Ocean, Texas, has been developed from the conversion of an older 500-mile, 30-in. oil pipeline built in 1975-1976. The original Seaway Pipeline was planned in the early 1970s as a major Midwest oil artery, feeding inland midcontinent refineries with lower-cost imported oil. The Seaway pipeline was owned by a consortium of seven companies. It began operation in mid-1976 and continued almost uninterrupted until 1982, when excess U.S. refining capacity, coupled with reduced oil imports, resulted in the closing of several large inland refineries. Reduced crude oil import demands and the refinery closings caused the Seaway Pipeline to become inactive for long periods of time. Forecast use of the pipeline and its terminals was not favorable, and the facility was offered for sale. Phillips Petroleum Co. was successful bidder on the pipeline and Jones Creek Terminal on the south. Included in the pipeline sale were five existing intermediate pumping stations and six future pump station sites. Phillips' objective was to capitalize on the line's advantageous location to gather raw gas in Oklahoma and Texas for use as fuel at the company's refinery and petrochemical complex at Sweeny, Texas. Gasmore » in excess of the company's needs could be sold in the Houston area. Phillips took possession of the pipeline in April 1984 and divided it into two gas pipelines; the northern portion, owned by Phillips Gas Pipeline Co., extending from Cushing to just south of the Red River; and the southern portion, owned by Phillips Natural Gas Co., extending from the Red River to the Texas Gulf Coast.« less