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Kinder Morgan Energy Partners agreed yesterday to buy two oil products pipelines and 12 storage terminals from the GATX Corporation for $1.15 billion in cash and assumed debt.
Some products pipelines serve the refinery, with the responsibility of transporting the refined oil to the downstream market.
Oil depots along products pipelines are important components of the pipeline transportation system and down-stream markets.
The Products Pipelines segment is engaged in the transportation and terminating of refined petroleum products, including gasoline, diesel fuel, jet fuel and natural gas liquids.
The Liquids Pipelines segment consists of common carrier and contract crude oil, natural gas liquids and refined products pipelines and terminals in Canada and U.S., including Canadian Mainline, Regional Oil Sands System, Southern Lights Pipeline, Spearhead Pipeline, Seaway Crude Pipeline interest and other feeder pipelines.
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Under the new pact, BP Amoco would retain its interest in the refined petroleum products pipeline of the Seaway Pipeline Company.
Open image in new window Fig. 1 Oil products pipeline system.
The scheduling of an oil products pipeline system is subject to several constraints.
The cost of oil depots along a products pipeline mainly includes blending costs, fractionation costs and switching costs.
(2) When batches move in products pipeline in order, contamination will occur inevitably between the two adjacent oils.
A Chinese case-study, a large scale of oil depot system of a refined oil products pipeline, is under research.
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