Company builds an AL-MS pipeline to Chevron refinery

JACKSON COUNTY, MS (WLOX) - Work is underway to make sure Chevron has the crude oil it needs to run its new 1 point 4 million dollar Pascagoula expansion. Chevron officials say construction on the base oil project should wrap up around the end of year. Meanwhile, a pipeline that spans two states is also being built by Plains All American Pipeline.

WLOX caught up with crews working in Jackson County's Big Point community. Workers are building from Mobile County to Chevron in Pascagoula. The pipeline is a vital link for Chevron's expansion into producing premium base oils like lubricants and motor oils.

Chevron Spokesperson Alan Sudduth said, "Because we're adding that new product line we're needing to make sure we're having additional ways of getting crude into the refinery."

The crude that will flow through the pipeline will come from Plains All American Pipeline's 10 Mile terminal in Alabama.

"For lubes we need what we call lube compatible crudes. Right now we're not getting a lot of that. Not as much as we need in order to make base oil project successful so," said Sudduth. "We've worked with Plains and they are going to be transporting to us lubes compatible crudes."

The oil transfer will eventually allow Chevron to produce 25,000 barrels of premium base oil per day which has Chevron very excited.

"It will be great to add stability to the refinery because again while we've for 50 years have been providing the needed chemicals and fuels for our nation in our part of the world," Sudduth said. "We'll also be adding to that base oil so that we can take this refinery and make it something that is viable and dependable for the next 50 years."

Plains All American Pipeline is spending more than $100 million to build the pipeline. Officials said the route was chosen considering the impact to the environment, area land owners, terrain, rights of way, and the directness of the route. They said the pipes are heavily walled and will be remotely monitored 24 hours a day, seven days a week. They said with a deeper burial than required by law, the pipeline is less susceptible to third-party damage.

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