Valero buys 40% interest in new segment of Plains' Red River pipeline

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

Valero Energy Partners (NYSE:VLP) agrees to acquire a 40% undivided interest in the Hewitt segment of Plains All American Pipeline's (NYSE:PAA) Red River pipeline for ~$70M.

The Hewitt segment, which originates at Plains' Cushing, Okla., terminal and ends at Hewitt, Okla., is a newly constructed 138-mile crude oil pipeline with 150K bbl/day of capacity that began supplying crude oil this month to Valero's refinery in Ardmore, Okla.

Concurrent with the acquisition, VLP enters into a 10-year throughput agreement with a subsidiary of Valero Energy (NYSE:VLO).

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