Link Energy LLC is a Delaware limited liability company formed in 2002. The Company is engaged in the purchasing, gathering, transporting, trading, storage and resale of crude oil and related activities. The Company is a major independent crude oil gathering and marketing companies in North America. The company currently gathers and markets from approximately 17,000 field gathering points in 15 states and Canada averaging 254,000 barrels per day at the end of 2003. In addition, it is engaged in...
Link Energy LLC is a Delaware limited liability company formed in 2002. The Company is engaged in the purchasing, gathering, transporting, trading, storage and resale of crude oil and related activities. The Company is a major independent crude oil gathering and marketing companies in North America. The company currently gathers and markets from approximately 17,000 field gathering points in 15 states and Canada averaging 254,000 barrels per day at the end of 2003. In addition, it is engaged in interstate and intrastate crude oil transportation and crude oil terminalling and storage activities.
The company purchases crude oil from various producers and operators and markets the crude oil to refiners and other customers nationwide. The Company transports crude oil through pipelines, including approximately 7,450 miles of active gathering and transmission pipelines that it owns, as well as through its trucking operations, which includes a fleet of 200 owned or leased trucks. The company has approximately 8.1 million barrels of active storage capacity associated with field tanks.
The company’s principal business segments are its North American Crude Oil gathering and marketing operations and its Pipeline Operations.
North American Crude Oil Operations
The company’s crude oil gathering and marketing operations consist of purchasing and gathering crude oil from approximately 1,400 producers, operators and other sellers in 15 states and Canada for subsequent sale to refiners and other customers.
Gathering and marketing of crude oil consists of: purchasing lease crude oil from producers and operators at field gathering points and in bulk from aggregators at major pipeline interconnections and marketing locations; providing accounting and administrative services to some producers and operators; transporting crude oil through its own proprietary or common carrier pipelines, through its fleet of trucks or on assets owned and operated by third parties; buying and selling crude oil or exchanging it for either another grade of crude oil or for crude oil at a different geographic location or delivery time in order to increase margins or meet contract delivery requirements; and marketing crude oil to refiners, large integrated oil companies and other customers.
Competition: In its crude oil gathering and marketing business, the company competes with major oil companies, large independent crude gatherers and a large number of small regional independent gatherers. The company’s principal competitors in the purchase of leasehold crude oil production include BP, Shell, Plains All American, Sun Refining and Marketing, TEPPCO and various regional competitors.
Pipeline Operations
Through its common carrier pipeline systems, the company transports crude oil for its North American Crude Oil business segment and third-party customers pursuant to published tariff rates regulated by the Federal Energy Regulatory Commission (FERC) and state regulatory authorities. Accordingly, it offers transportation services to any shipper of crude oil, provided that the crude oil meets the conditions and specifications contained in the applicable pipeline tariff.
Competition: The Company’s Pipeline Operations face competition from a number of major oil companies and smaller entities. The principal competitors of its Pipelines Operations are Sunoco Logistics, Plains All American, ConocoPhillips, Genesis, Seminole Trading and Gathering, and TEPPCO.
On Apr 1, 2004, Link Energy announced that it has concluded the sale of its entire crude oil marketing, pipeline and trucking transportation business to Plains All American Pipeline, L.P. As a result of the closing of the transaction, Link Energy will have no further operations and will conduct an orderly winding up of its business and affairs.