Arco, Pacific Pipeline to Merge Operations

Potential competitors Arco Pipe Line Co. and Pacific Pipeline System have agreed to merge their Southern California operations. The joint venture would bring together Arco’s 118-mile pipeline, which runs from Kern County to Carson, with the 132-mile line that Pacific is building from Kern County to Wilmington and El Segundo. The joint venture must be approved by the California Public Utilities Commission, which the companies expect will act early next year. The combined pipeline system would be capable of moving an average of 235,000 barrels of light and heavy crude oil a day. Arco Pipe Line is a subsidiary of Los Angeles-based Atlantic Richfield Co.; Pacific Pipeline is part of Denver-based Anschutz Corp.