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

|About: Plains All American Pipelin... (PAA)|By:, SA News Editor

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.