UPDATE 1-Marathon Petroleum joins plan to transport Utica oil

HOUSTON Oct 9 (Reuters) - Marathon Petroleum Corpand Harvest Pipeline Company said on Tuesday they have agreed tojointly build a truck-to-barge system on the Ohio River totransport crude oil produced in the Utica shale oil play torefineries for processing.

Marathon said the project will provide 24,000 barrels perday of truck-unloading capacity and a terminal that can load upto 50,000 barrels per day of oil onto barges at the Ohio Riverin Wellsville, Ohio.

Marathon will modify its existing Wellsville river terminalto handle the additional volume, and a new truck rack will bebuilt on property leased by Harvest Pipeline next to theMarathon operation.

Marathon has two refineries near the play -- 78,000 bpdCanton, Ohio, and 233,000 bpd Catlettsburg, Kentucky. The Cantonplant already processes 1,500 bpd of Utica crude and condensateafter Marathon built a truck-loading facility that can handle upto 12,000 bpd and is expandable to 24,000 bpd.

The joint project is expected to be finished by the end of2013, Marathon said.

(Reporting by Kristen Hays; Editing by Leslie Adler)

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