Crimson Pipeline has expanded transportation services to the Central and Northern California crude oil markets with its subsidiary’s acquisition of KLM Pipeline and Western San Joaquin Laterals (WSJ) from Chevron Pipe Line Company (CPL).
"This is an exciting time for our company – after more than a decade of providing safe, secure energy transportation solutions for Southern California, we’ve officially expanded the reach of our resources to the Central and Northern regions of the state," said Larry Alexander, president of Crimson Pipeline, LLC. "The acquisition from Chevron Pipe Line Company complements our existing operations and will enhance Crimson’s capacity to safely transport crude oil throughout California. We look forward to the new and expanded partnership opportunities the expansion will provide."
The KLM Pipeline transports crude oil from California’s prolific San Joaquin Valley to the San Francisco Bay area refiners, including Tesoro Golden Eagle Refinery, Valero Benicia Refinery and Shell Martinez Refinery. The KLM Pipeline system includes approximately 295 miles of active pipeline with a transportation capacity of 90,000 barrels per day.
With this acquisition, Crimson’s California pipeline network will traverse approximately 1,000 miles across Northern, Central, and Southern California. The acquisition nearly doubles the company’s ability to safely move crude oil throughout the state, expanding Crimson’s transportation capacity in California from 100,000 to nearly 200,000 barrels per day.
Both KLM Pipeline and WSJ are in common carrier service and governed by tariffs under the authority of the California Public Utilities Commission (CPUC).