Plains All American Pipeline abandons Byhalia Connection project
Jul. 02, 2021 5:25 PM ETPlains All American Pipeline, L.P. (PAA), VLOVLO, PAABy: Carl Surran, SA News Editor3 Comments
- Plains All American Pipeline (NASDAQ:PAA) says it will no longer pursue the Byhalia Connection oil pipeline project, citing lower U.S. oil production resulting from the COVID-19 pandemic.
- The project stirred strong local opposition, as the planned route would have taken the pipeline over the Memphis Sand Aquifer, which provides drinking water to 1M people in the Memphis area.
- Plains, which wanted to build the pipeline in a joint venture with Valero Energy (NYSE:VLO), told the Memphis city council in May that it would pause the project because of the objections.
- Plains' string of distribution cuts likely has ended, but caution is warranted since earnings and cash flow is expected to be down again in 2021, Daniel Thurecht writes in an analysis published recently on Seeking Alpha.