Recent Centennial Pipeline Developments
TEPPCO announced purchase of additional 1/6 interest in Centennial Pipeline from CMS for $20 million
- Attractive price due to CMS restructuring
- TEPPCO and Marathon Ashland each own 50% interest
TEPPCO has obtained 5-year capacity lease which benefits both Centennial and TEPPCO
- Increased Centennial throughput will improve transit time
- Provides mechanism for TEPPCO to optimize both systems
Combination of purchase and lease should provide modest improvement to TEPPCO results in 2003
- Increased Centennial revenue likely to be offset by line cleaning costs
- Will facilitate pursuit of growth opportunities