Plains All American Pipeline and Phillips 66 Partners Announce STACK Pipeline Joint Venture and Expansion Plans
August 03 2016 - 5:56PM
Business Wire
Plains All American Pipeline, L.P. (NYSE: PAA) and Phillips 66
Partners LP (NYSE: PSXP) today announced the formation of STACK
Pipeline LLC (JV), a 50/50 limited liability company to own and
operate a common carrier pipeline that transports crude oil from
the Sooner Trend, Anadarko Basin, Canadian and Kingfisher Counties
(STACK) play in northwestern Oklahoma to Cushing, Okla. Under the
JV agreement, Plains contributed an existing terminal located at
Cashion, Okla. with approximately 200,000 barrels of crude oil
storage (Cashion Terminal) and an approximately 55-mile crude oil
pipeline with a current capacity of approximately 100,000 barrels
per day (STACK Pipeline), while Phillips 66 Partners contributed
$50 million cash, which will be distributed to Plains, in exchange
for a 50 percent interest in the JV.
The JV plans to invest an estimated $15 million to expand the
STACK Pipeline by constructing a truck station at Highway 33,
approximately 12 miles northwest of the Cashion Terminal, a lateral
pipeline to connect the Highway 33 station to the Cashion Terminal
and 100,000 barrels of storage at the Cashion Terminal. Additional
expansion opportunities, including expanding the capacity of the
STACK Pipeline through looping the pipeline from the Cashion
Terminal to Cushing, as well as other gathering opportunities, are
also being pursued. The STACK Pipeline and the initial expansion
are supported by multiple long-term contracts as well as legacy
production gathered by existing Plains crude oil pipelines that
originate in western Oklahoma.
“Plains is pleased to be entering into this strategic
partnership with Phillips 66 Partners in one of the most exciting
emerging resource plays in North America,” said Greg L. Armstrong,
Chairman and CEO of Plains All American.
“We are pleased to announce this joint venture with Plains to
develop a strategic transportation asset in the emerging STACK
play,” said Greg Garland, Phillips 66 Partners chairman and CEO.
“This asset is a reliable and cost-effective transportation option
for producers in the STACK basin. The formation of the STACK joint
venture is consistent with our growth strategy and will provide
Phillips 66 Partners with a fee-based asset backed by third-party
committed shipper volumes. The system’s connectivity to Cushing
also will provide another source of advantaged crude to Phillips
66’s Ponca City Refinery.”
About Plains All American Pipeline
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 4.6 million
barrels per day of crude oil and NGL in its Transportation segment.
PAA is headquartered in Houston, Texas.
About Phillips 66 Partners
Headquartered in Houston, Phillips 66 Partners is a
growth-oriented master limited partnership formed by Phillips 66 to
own, operate, develop and acquire primarily fee-based crude oil,
refined petroleum product and natural gas liquids pipelines and
terminals and other transportation and midstream assets. For more
information, visit www.phillips66partners.com.
Forward Looking Statements
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject
to a variety of known and unknown risks, uncertainties, and other
factors that are difficult to predict and many of which are beyond
management’s control. An extensive list of factors that can affect
future results are discussed in each registrant’s Annual Report on
Form 10-K and other documents filed from time to time with the
Securities and Exchange Commission. The registrants undertake no
obligation to update or revise any forward-looking statement to
reflect new information or events.
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version on businesswire.com: http://www.businesswire.com/news/home/20160803006794/en/
Plains All AmericanInvestors:Ryan Smith, (866)
809-1291Director, Investor RelationsorMedia:Brad Leone,
(866) 809-1290Director, CommunicationsorPhillips 66
PartnersInvestors:Rosy Zuklic,
832-765-2297rosy.zuklic@p66.comorC.W. Mallon,
832-765-2297c.w.mallon@p66.comorMedia:Dennis Nuss,
832-765-1850dennis.h.nuss@p66.com
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