Genesis Energy acquires Louisiana pipeline interests

For $205 million, Genesis Energy is acquiring Marathon Oil Company’s interests in several Gulf of Mexico crude oil pipeline systems. The purchase includes 28% interest in Poseidon Oil Pipeline Company, 29% interest in Odyssey Pipeline and 23% interest in the Eugene Island Pipeline System—all of which deliver crude oil from various parts of the gulf to other pipelines as well as terminals onshore and offshore in Louisiana. The transaction is expected to close before the end of the year. The Poseidon system is a 367-mile network of crude oil pipelines capable of delivering approximately 400,000 barrels per day; the Odyssey system is a 120-mile network capable delivering up to 300,000 barrels per day; and the Eugene Island Pipeline System is a 183-mile network capable of delivering nearly 200,000 barrels per day. “This acquisition represents another exciting growth opportunity for Genesis,” says Genesis CEO Grant Sims. “These pipelines, especially Poseidon, would complement our existing infrastructure in the Gulf of Mexico, and enhance our ability to provide attractive capacity and market optionality to producers for their existing and future developments as well as our refining customers onshore Texas and Louisiana.” Genesis Energy is headquartered in Houston. Its operations are primarily in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida and the Gulf of Mexico. Read the rest of this week’s 10/12 Corridor weekly newsletter here.