Plains All American Pipeline LP (PAA) plans to construct a 440-mile, 20-in. crude oil pipeline that will carry as much as 200,000 b/d of sweet crude from the Plains Cushing, Okla., terminal to Valero’s Memphis Refinery. The project is expected to cost $900 million and be completed in late 2016.
PAA says the pipeline, to be called Diamond, also will provide access to Valero Energy Partner’s Collierville line and is underpinned by a long-term shipping agreement with Valero and a related contract for storage and terminalling services at the Plains Cushing terminal.
Valero holds an option until January 2016 to become a partner in Diamond and purchase 50% interest. PAA says construction of the pipeline will expand upon the refinery’s long-term ability to produce gasoline, diesel, and jet fuel for the greater Memphis and eastern Arkansas area.
In addition to Diamond, PAA is currently building the 310-mile, 20-in. Cactus crude oil pipeline from McCamey, Tex., to Gardendale, Tex. The company expects it to cost $350-375 million and enter service first-quarter 2015 (OGJ Online, Apr. 16, 2013).