Colonial Pipeline Expansion Into Knoxville Moving Forward

ATLANTA, Ga. — Colonial Pipeline today announced it will proceed with permitting and construction of a new, larger pipeline to Knoxville, providing the East Tennessee market with more gasoline and other liquid fuels in a low-cost, environmentally safe manner. 

Meeting in Atlanta, the company’s Board of Directors approved Colonial plans to lay new, 16-inch pipe along Colonial’s current right-of-way, from northeast of Chattanooga to Knoxville. Engineering and other preparatory work for the project has been under way since July 2001. 

This project will be completed in phases, with construction scheduled to begin on the first 43-mile section in mid-2003. When completed by the end of 2003, Colonial deliveries to Knoxville will have risen by 56 percent, from the current 80,000 barrels per day to 125,000 barrels per day. 

The multi-phase expansion, which includes the addition of larger pumps and motors that move product through the pipeline as well as new pipe, ultimately will increase Colonial’s Knoxville deliveries to 180,000 barrels per day. Colonial’s expansion efforts also benefit the Chattanooga market and will ensure that area has an adequate source of liquid fuels as it grows and develops. 

“The Knoxville market needs this supply to sustain its commerce and growth,” said Dave Lemmon, Colonial’s President and CEO. ​“Our commitment is to meet this need with a new pipeline that protects and enhances public safety and the environment in all of our communities.” 

“We are excited by the opportunity to work with our customers to supply fuels to Knoxville and its residents,” Lemmon said. ​“Colonial’s expansion will provide the full supply this market needs to continue developing and prospering.” 

At the completion of the project, Colonial will serve Knoxville with a 16-inch pipeline that originates in Atlanta. When the new pipeline is placed in operation, the existing 10-inch line will be idled. 

Since 1998, the demand for pipeline-delivered fuel in Knoxville has regularly exceeded the capacity of pipelines serving the region. This has resulted in the market being supplied by more expensive and less efficient means. Pipelines provide the safest, most economical method of supplying liquid fuels to markets like Knoxville. 

Colonial representatives are currently meeting with landowners along the pipeline route to obtain permissions required by the new construction. 

Phase by phase, here’s how Colonial’s Knoxville Expansion Project will work: 

· Phase One – Completed, Sept. 2002 – Additional pumps and motors added 20,000 barrels-per-day to the 80,000 barrels being delivered. 

· Phase Two – Under way – Permitting and then construction of a new 16-inch line along Colonial’s existing pipeline route from northern Hamilton County through Bradley County and into northern McMinn County. When completed in late 2003, this will add up to 25,000 more barrels per day to the Knoxville market, bringing Colonial’s deliveries to a maximum of 125,000 barrels per day. This phase includes surveying and right-of-way improvements for a 24-mile length of right of way in Loudon and Knox counties. 

· Phase Three – Planned – Construction of new 16-inch pipeline in Loudon and Knox counties. When completed, it will deliver up to an additional 25,000 barrels per day and Colonial’s deliveries to Knoxville will reach a maximum of 150,000 barrels per day. 

· Phase Four – Planned – The addition of larger pumps and motors will increase deliveries by up to 30,000 barrels per day to an estimated total of 180,000 barrels per day. 

Colonial Pipeline, with headquarters in Atlanta, Ga., daily delivers 95 million gallons of gasoline, diesel fuel, home heating oil, aviation fuel and military fuels. A vital piece of the nation’s infrastructure, Colonial’s underground pipeline stretches from Houston to the New York harbor. 

Colonial’s mission is to safely deliver needed fuels in a manner that protects the safety of the public and Colonial employees, and that protects the environment. For the past two years, Colonial has received the pipeline industry’s highest awards for safety and environmental performance.