PAA, Delek enter venture to build Caddo pipeline

Plains All American Pipeline LP (PAA) reported the formation of Caddo Pipeline LLC, a 50-50 joint venture with Delek Logistics Partners LP, to develop the Caddo Pipeline, an 80-mile, 12-in. system between Longview, Tex., and Shreveport, La.

The Caddo line, which will originate at the Plains Atlas Terminal in Longview, will have the capacity to move up to 80,000 b/d of crude oil to supply refineries in the Shreveport area and Delek Logistics’ pipeline system supplying Delek US Holdings’ El Dorado, Ark., refinery.

Under the agreement, PAA will construct and operate the Caddo line. The total project investment is expected to be about $100 million, and the pipeline is supported by long-term shipper commitments. Completion is expected in mid-2016.