Chevron Midstream Investments sells its interests in the Capline Pipeline system to Plains Pipeline, L.P.
Clients Chevron Corporation
Jones Day advised Chevron Midstream Investments, LLC, a subsidiary of Chevron Corporation, in the sale by Chevron Midstream of all of its interests in the Capline Pipeline system and associated storage and terminalling facilities to Plains Pipeline, L.P. The transaction involved the sale by Chevron Midstream, Marathon Oil Corp. and Shell Pipeline Company LP of all of the capital stock of Southcap Pipe Line Company to Plains Pipeline and a related sale by Southcap of substantially all of its assets for a total purchase price of $64 million.
The assets sold include a 21% undivided interest in Capline and a 100% interest in 720,000 barrels of tankage at Patoka, Illinois.
Capline is a 633-mile, 40-inch mainline crude oil pipeline that originates in St. James, Louisiana, and terminates in Patoka, Illinois. This system is one of the primary transportation routes for shipping crude oil and condensate to the Midwestern U.S., accessing approximately 3 million barrels per day of refining capacity in PADD II. With two active docks capable of handling 600,000-barrel tankers as well as access to the Louisiana Offshore Oil Port, Capline is a key transporter of sweet and light sour foreign crude to PADD II. Total designed operating capacity of Capline is approximately 1.1 million barrels per day.