To link Uinta Basin’s waxy crude oil production with the Salt Lake area refineries, Uinta Express Pipeline Company, a subsidiary of Tesoro Refining and Marketing LLC, is proposing to build the Uinta Express Pipeline.
The project will consist of an approximately 135-mile, 12-inch, buried, insulated, carbon steel pipeline and ancillary facilities. It will be a common carrier pipeline with an expected capacity to be around 60,000 barrels per day. Market conditions and further analysis will determine the project’s precise specifications.
The proposed pipeline will provide a safe and efficient way to move waxy crude currently being trucked to the refineries. The pipeline will take about 250 tanker trucks off the road daily that are making roundtrips from the Uinta Basin to Salt Lake City. The project will generate an economic boost by creating temporary and permanent jobs, facilitating the usage of local Utah crude and helping to provide an important piece of energy infrastructure to meet demand.
The final Environmental Impact Statement (EIS) and Draft Record of Decision will be released in December 2015 followed by a 45-day objection period. The U.S. Forest Service will issue its final Record of Decision once this period is complete.
Over the past several months, we have been performing an internal review of our proposed projects including the Uinta Express Pipeline project to determine where they fit into our portfolio going forward. Unfortunately, this evaluation stage has coincided with unfavorable market conditions and this downturn has added uncertainties about the economics of shipping crude oil through the proposed Uinta Express Pipeline. Because of this we are not planning to advance the project beyond its current stage and are putting further development on hold.
We and everyone who has worked on the project are pleased with the positive engagement, community awareness, and support received for the project. We greatly appreciate the hard work and the strong collaboration from all the stakeholders who have invested time and expertise.
We have completed a lot of great work with the EIS and the engineering review phase and may reevaluate moving forward with this project in the future under more favorable conditions.
We are committed to being part of the community. Utah is an important area for us. We’ve been here a long time and look forward to being here a lot longer. We’ve made several investments in our operation in Utah and will continue to look for ways to invest further.