Plains All American to construct $900M Cushing-to-Memphis pipeline

Plains All American Pipeline (PAA -0.5%) announces plans to construct a 440-mile pipeline from its Cushing, Okla., terminal to Valero's (VLO +0.2%) Memphis refinery, to provide capacity of up to 200K bbl/day of domestic sweet crude.

PAA expects total project investment of ~$900M and completion in late 2016.

PAA says the Diamond pipeline project is underpinned by a long-term shipping agreement with VLO and a related contract for storage and terminalling services at the Cushing terminal.

VLO holds an option until Jan. 2016 to become a partner in the pipeline and purchase a 50% interest.

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Comments (2)
  • jklk0429
    , contributor
    Comments (216) | Send Message
    Does anyone know if it would be VLO or VLP that would take the 50% stake in the project? Thanks............
    21 Aug 2014, 12:02 PM Reply Like
    , contributor
    Comments (36) | Send Message
    Maybe VLO first and VLP eventually.
    21 Aug 2014, 04:45 PM Reply Like
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