 ConocoPhillips owns or leases various assets to provide strategic, timely and environmentally safe delivery and storage of crude oil, refined products and natural gas liquids. These assets include thou¬sands of miles of pipeline systems; product, crude oil and liquefied petroleum gas (LPG) terminals; a coke exporting facility; a fleet of innovative, environmentally sound marine and inland vessels; and a diverse fleet of rail cars.
Pipelines and Terminals
As of Jan. 1, 2008, ConocoPhillips had approximately 28,000 miles of common-carrier crude oil, raw natural gas liquids and petroleum products pipeline systems in the United States, including those partially owned or operated by affiliates. The company also owned or operated 51 finished product terminals, seven liquefied petroleum gas terminals, five crude oil terminals and one coke exporting facility.
In December 2007, ConocoPhillips acquired a 50 percent equity interest in the Keystone Oil Pipeline to form a 50/50 joint venture with TransCanada Corp. This joint venture plans to construct a 2,148¬mile crude oil pipeline originating in Hardisty, Alberta, with delivery points at Wood River and Patoka, Ill., and Cushing, Okla. Keystone is designed to have a capacity of 590 MBD and has received binding, firm commitments from creditworthy shippers for 495 MBD of the planned pipeline capacity, of which ConocoPhillips has a portion. Subject to receipt of regulatory approvals, initial deliveries for Keystone’s first segment are projected for 2009, and the second segment is expected to be fully operational in the first half of 2011. In mid-2008, the joint venture announced plans to expand the Keystone Pipeline system. The expansion includes a 1,930-mile pipeline from Hardisty, Alberta, to a delivery point near existing terminals in Port Arthur, Texas, and would provide 500 MBD of additional capacity from Western Canada to the United States. ConocoPhillips expects to utilize the Keystone Pipeline to transport its Canadian crude oil production to market and as a source of supply to WRB Refining.
Marine Vessels
On Dec. 31, 2007, the company had 18 double-hulled crude oil tankers under charter, with capacities ranging in size from 650,000 BBL to 1,100,000 BBL. These tankers are utilized to transport feedstocks to certain ConocoPhillips U.S. refineries. (The infor¬mation above excludes the operations of the company’s subsidiary, Polar Tankers, Inc., which is discussed in the E&P segment overview, as well as an owned tanker on lease to a third party for use in the North Sea.)
Several transportation assets were sold during 2007, including the domestic marine inland barge and vessel operations, the Grand Junction terminal, the Bettendorf terminal, and the Kapalama Pipeline. In January 2008, the company completed the sale of the international marine operations’ leasehold interest in six international tankers.
Truck and Rail
A joint venture, Sentinel Transportation, LLC (Sentinel), provides dedicated and specialized trucking services for ConocoPhillips and DuPont. As of Jan. 1, 2008, Sentinel had approximately 700 employees based at 47 terminals, operating approximately 400 transports and driving 35 million miles per year to deliver petroleum feedstocks, finished products and specialty chemicals across the United States. ConocoPhillips represents nearly 65 percent of Sentinel’s business activity.
Rail movements are provided via a diverse fleet of over 6,300 owned and leased rail cars moving products in support of U.S. refinery and specialty operations.
Find out more at ConocoPhillips Transportation
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