Delek US Holdings, Inc. is in the process of reversing crude flows on the Paline Pipeline System, which runs from Longview, Texas, to Nederland, Texas, the company reported March 8 in its fourth quarter 2011 earnings report.
The Paline Pipeline System, a 10-inch, 185-mile crude oil pipeline had been used to transport crude from the Gulf Coast north into Longview.
“Delek US is in the process of reversing crude flows on Paline under a lease agreement with a major oil company that expires at the end of 2014,” the report read.
Delek US acquired Paline Pipeline Company and all related assets on Dec. 19, 2011, from Ergon Terminaling Inc. for purchase price of $50 million, consisting of $25 million cash and a three-year, $25 million note payable to Ergon.
