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Pipeline proposed to feed Wyoming rail terminal

The proposed 70-mile line would help with oil glut, Genesis Energy says.
By Daniel J. Graeber   |   April 29, 2014 at 9:46 AM   |   Comments

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HOUSTON, April 29 (UPI) -- Genesis Energy, which has headquarters in Houston, said it was soliciting interest for a crude oil pipeline that would run 70 miles through Wyoming.

The company said it was seeking shipper commitments for a 70-mile oil pipeline that would run from Casper, Wyo., to the Pronghorn rail facility in Douglas, Wyo.

Genesis Energy CEO Grant Sims said the proposed pipeline would give shippers additional options to transport crude oil by rail.

Pronghorn is the only regional facility serviced both by BNSF Railway and Union Pacific Railroad.

"As Canadian [oil] volumes continue to increase over time, along with local production, Pronghorn is best positioned longā€term to provide shippers with the flexibility to load trains and facilitate the movement of these barrels directly to the most attractive markets," Sims said in a statement Monday.

An increase in North American crude oil production has strained existing pipeline capacity, forcing some energy companies to turn to rail as an alternate transit method. The safety of rail transport has come into question because of a series of derailments involving railcars carrying crude oil.

The solicitation period ends May 30. If there's enough interest, Genesis said the new pipeline could go into service by the middle of next year.

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