Huge breakthrough for California gas as oil giant buys critical pipeline that links network of refineries

A California oil giant is set to buy a critical pipeline between Kern County’s oil fields and Bay Area refineries that has been shuttered for months.California Resources Corp.purchased about 2,000 miles of pipeline from Denver-based CorEnergy Infrastructure Trust Inc, and plans to reopen the route that has been closed since December.The $63 million deal will allow CRC to transport up to an additional 400,000 barrels of crude oil per day and reopening work could start as early as October 1.The deal is not final as the California Public Utilities Commission will need to give them permission to proceed.The company asked for its approval on June 16 to buy some of the assets, with the CPUC set to hold a vote on Thursday.CRC’s president and chief executive officer expressed confidence the purchase will enhance their position as one of the state’s leading energy providers.

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By clicking above you agree to the Terms of Use and Privacy Policy.Never miss a story “This transaction further strengthens CRC’s position as California’s leading integrated infrastructure energy platform,” Francisco Leon, President and Chief Executive Officer of CRC, said.“This diversified midstream network will enhance our ability to efficiently deliver California-produced barrels directly to the highest-value markets, while increasing operating flexibility and flow assurance across our portfolio.

Importantly, these strategic, difficult-to-replicate assets further strengthen our California-focused strategy and support durable long-term value creation,” he added.The purchase is expected to benefit Central Valley oil producers, who are intrigued by the possibilities.“I’m very loyal to my current refiner, but I’m definitely going to wait and see what happens to the differentials,” Kern County oilman Chad Hathawa...