subsidiaryValero Terminaling and Distribution Co. acquired all of the remaining ownershipinterest in Parkway Pipeline LLC, its jointventure with KinderMorgan Inc.

Valero'spurchase of Kinder Morgan's 50% membership interest in the 141-mile, 16-inchpipeline is effective June 30, according to a July 12 news release. The priceof the cash transaction was not disclosed.

ParkwayPipeline is capable of transporting 110,000 barrels per day, expandable to over200,000 bbl/d, of refined petroleum products from Valero's St. Charles refineryin Norco, La., to Collins, Miss., to be fed into the Plantation Pipe Line Co.system, which is operated and 51% owned by Kinder Morgan. has a rightof first offer to buy Valero's initial 50% interest in Parkway Pipeline.

In aseparate transaction, Parkway Pipeline also agreed to construct, own andoperate a new lateral segment connecting the pipeline to 's system nearCollins.