Holly Energy Partners considers a new Permian Basin pipeline

Holly Energy Partners, L.P. says it’s considering possible construction of a new pipeline in the Permian Basin.

The company has contracted with the engineering firm AECOM to carry out a feasibility study for a potential refined product pipeline from Orla, Texas to Midland, Texas.

Holly Energy said it would complement the company’s existing footprint in the Permian Basin and the recently announced truck loading rack project in Orla.

The company expects such a line would have an initial capacity of 40,000 barrels a day and be in service as early as the third quarter of 2019.

Holly Energy Partners, headquartered in Dallas already has a refinery in Tulsa as well as El Dorado, Kansas plus storage facilities in New Mexico, Arizona, Washington, Idaho, Utah, Nevada and Wyoming.