Plantation pipeline

The Plantation pipeline is one of the major refined product pipelines that moves gasoline, diesel, and jet fuel from the US Gulf Coast to the Southeast US market.

Plantation links the refining capacity in Louisiana (and by other connections the rest of the Gulf Coast) to Southeast US markets, including Georgia, North Carolina, South Carolina, and Virginia. Plantation competes with the Colonial pipeline, which also serves these same markets.

Due to the volume of product moved, the pipeline (especially at its Houston origin) is a major point for spot trading of these products, providing the Gulf Coast Pipe price assessment.

Description

Plantation is owned in partnership by Kinder Morgan (51.2%) and ExxonMobil (48.8%). 

  • 700 thousand barrels/day capacity to move gasoline, diesel, heating oil and jet fuel from Baton Rouge to Virginia
  • 130 shipper terminals and 29 delivery terminals across 8 states from Louisiana to Virginia
  • Minimum batch size of 15 thousand barrels for fungible movements and 25 thousand barrels for segregated movement

History

  • 1940 - Company founded by four oil companies (Shell, Texaco, Chevron, and Exxon) and construction began
  • 1942 - Pipeline begins operation with a 8" line from Baton Rouge to Greensboro, delivering 48 thousand bpd for four customers
  • 1964 - Extension to Richmond and Alexandria, VA
  • 1968 - Major expansion including increased capacity and new spur lines
  • 1998 - Shell and Texaco (through Equilon JV) sold stake to Kinder Morgan
  • 1999 - Kinder Morgan acquires controlling interest by acquiring Chevron's stake
  • 2004 - Exxon sold seven terminals connected to Plantation to Kinder Morgan
  • 2016 - Kinder Morgan suspends plans to construct a 360-mile line (Palmetto pipeline) connecting the Plantation pipeline to Savannah and Jacksonville

Tim Fitzgibbon (12/2018)

McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. By using this Site or clicking on "OK", you consent to the use of cookies.