Colonial Pipeline Company and MIECO, Inc. Dedicate New Fuel Oil Blending Facility in Baton Rouge, La.

Colonial Pipeline Company, a leading interstate common carrier of petroleum products, and MIECO, Inc., a prominent fuel oil blending company, have come together to dedicate a new 1.3 million barrel fuel oil blending facility in Baton Rouge, La. The facility, which has been in operation for several weeks, is a significant expansion of MIECO's blending operations, extending its Gulf Coast presence from the Houston area to the Baton Rouge area. The partnership marks a new venture for Colonial, allowing the company to enter a new market niche related to its core pipeline business.

Key Takeaways:

• The new fuel oil blending facility has a capacity of 1.3 million barrels and will greatly expand MIECO's blending operations.
• The facility is located in Colonial's Baton Rouge Junction Tank Farm at Port Hudson, La., and has been in operation for several weeks.
• Colonial will benefit from leasing its spare tankage to MIECO and transporting the fuel oil to selected marketing terminals.
• The partnership marks Colonial's entry into a new market niche, allowing the company to expand its services and revenue streams.
• MIECO will use the facility's capacity to create special mixtures of light cycle grade 79 oil with other grades of fuel oil.
• The facility's blending units, installed at the base of four tanks, operate propeller-like paddles within the tanks to mix different grades of distillates together.
• Colonial Pipeline Company operates a system of 5,317 miles of pipeline that transports various petroleum products to 261 marketing terminals in 13 states throughout the Southeast and the Eastern Seaboard.
• The company has average daily deliveries of 80 million gallons and annual revenues of $550 million.

Statistics:

• The new fuel oil blending facility has a capacity of 1.3 million barrels.
• MIECO's blending operations will now extend across 13 states throughout the Southeast and the Eastern Seaboard.
• Colonial Pipeline Company operates a system of 5,317 miles of pipeline.
• The company has 261 marketing terminals in 13 states throughout the Southeast and the Eastern Seaboard.
• Colonial has average daily deliveries of 80 million gallons.
• The company's annual revenues are $550 million.

Sources:

• Colonial Pipeline Company's official statement, dated December 13, 1995.
• Interview with Noel Griese, Public Relations representative, Colonial Pipeline Company, December 13, 1995.