Plains All American Announces Plans to Construct Pipeline from Cushing to Memphis
August 21 2014 - 10:57AM
Business Wire
Plains All American Pipeline, L.P. (NYSE: PAA) today announced
it will construct the Diamond Pipeline, a 440-mile, 20-inch crude
oil pipeline that will provide capacity of up to 200,000 barrels
per day of domestic sweet crude from the Plains Cushing, Okla.
terminal to the Valero Memphis Refinery, and the ability to access
Valero Energy Partner’s Collierville pipeline. The total project
investment is expected to be approximately $900 million and is
expected to be completed in late 2016.
The Diamond Pipeline project is underpinned by a long-term
shipping agreement with Valero and a related contract for storage
and terminalling services at the Plains Cushing Terminal. Valero
holds an option until January 2016 to become a partner in the
Diamond Pipeline and purchase a 50 percent interest. Construction
of the pipeline will enhance the refinery’s long-term ability to
produce gasoline, diesel and jet fuel for the greater Memphis and
eastern Arkansas area.
Plains All American Pipeline, L.P. is a publicly traded master
limited partnership that owns and operates midstream energy
infrastructure and provides logistics services for crude oil,
natural gas liquids ("NGL"), natural gas and refined products. PAA
owns an extensive network of pipeline transportation, terminalling,
storage and gathering assets in key crude oil and NGL producing
basins and transportation corridors and at major market hubs in the
United States and Canada. On average, PAA handles over 3.5 million
barrels per day of crude oil and NGL on its pipelines. PAA is
headquartered in Houston, Texas.
Forward Looking Statements
Certain matters discussed in this release are forward-looking
statements that involve risks and uncertainties that could cause
actual results or outcomes to differ materially from results or
outcomes anticipated in the forward-looking statements. These risks
and uncertainties include, among other things, shortages, cost
increases or delays in receipt of supplies, materials or labor;
inability to obtain, delays in the receipt of, or other issues
associated with necessary licenses, permits, approvals, consents,
rights of way or other governmental or third party requirements;
the impact of current and future laws, rulings, orders,
governmental regulations, accounting standards and statements and
related interpretations; weather interference with business
operations or project construction, including the impact of extreme
weather events or conditions; environmental liabilities, issues or
events that result in construction delays or otherwise impact
targeted in-service dates; interruptions in service on third-party
pipelines or facilities; general economic, market or business
conditions and the amplification of other risks caused by volatile
financial markets, capital constraints and pervasive liquidity
concerns; and other factors and uncertainties inherent in the
transportation, storage, terminalling and marketing of crude oil
and refined products as discussed in PAA's filings with the
Securities and Exchange Commission.
Plains All American Pipeline, L.P.Investors:Ryan Smith,
866-809-1291Director, Investor RelationsorMedia:Brad Leone,
866-809-1290Director, Communications
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