A new underground oil pipeline running from Ohio to Western Pennsylvania could help stabilize gas prices and ease shortages once construction is complete, according to a report Friday in the Pittsburgh Tribune-Review
Citing industry experts, the newspaper reported that the 160-mile-long planned pipeline, to be built by Sunoco Logistics Partners L.P., would be linked to other existing lines to transport refined oil products from the Midwest to the eastern Ohio and Pittsburgh regions.
Experts believe that having a more direct link to oil products from production fields in North Dakota and other points westward will help relieve shortages caused by shut down or idled refineries along the East Coast and in the Caribbean. The crude oil from North Dakota fields, which is processed in Indiana and Michigan, is about $40 cheaper per barrel than the imported oil that most refineries in the East process.
The pipeline project by the Philadelphia-based partnership is “part of a national trend" aimed at increasing the flow of petroleum from expanded production areas in the United States, Brian L. Milne, an editor at commodity information services provider Telven DTN, told the Tribune-Review.
“We have a lot of pipelines in this country, but they are not going where they are needed right now,” he said.
Sunoco partnership officials said their Allegheny Access pipeline would be capable of delivering 85,000 barrels of oil a day when it goes on line in 2014.
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