Plains All American Pipeline, L.P. (NYSE: PAA)
today announced it will construct the Diamond Pipeline, a 440-mile,
20-inch crude oil pipeline that will provide capacity of up to 200,000
barrels per day of domestic sweet crude from the Plains Cushing, Okla.
terminal to the Valero Memphis Refinery, and the ability to access
Valero Energy Partner's Collierville pipeline. The total project
investment is expected to be approximately $900 million and is expected
to be completed in late 2016.
The Diamond Pipeline project 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 the Diamond Pipeline
and purchase a 50 percent interest. Construction of the pipeline will
enhance the refinery's long-term ability to produce gasoline, diesel and
jet fuel for the greater Memphis and eastern Arkansas area.
Plains All American Pipeline, L.P. is a publicly traded master limited
partnership that owns and operates midstream energy infrastructure and
provides logistics services for crude oil, natural gas liquids ("NGL"),
natural gas and refined products. PAA owns an extensive network of
pipeline transportation, terminalling, storage and gathering assets in
key crude oil and NGL producing basins and transportation corridors and
at major market hubs in the United States and Canada. On average, PAA
handles over 3.5 million barrels per day of crude oil and NGL on its
pipelines. PAA is headquartered in Houston, Texas.
Forward Looking Statements
Certain matters discussed in this release are forward-looking statements
that involve risks and uncertainties that could cause actual results or
outcomes to differ materially from results or outcomes anticipated in
the forward-looking statements. These risks and uncertainties include,
among other things, shortages, cost increases or delays in receipt of
supplies, materials or labor; inability to obtain, delays in the receipt
of, or other issues associated with necessary licenses, permits,
approvals, consents, rights of way or other governmental or third party
requirements; the impact of current and future laws, rulings, orders,
governmental regulations, accounting standards and statements and
related interpretations; weather interference with business operations
or project construction, including the impact of extreme weather events
or conditions; environmental liabilities, issues or events that result
in construction delays or otherwise impact targeted in-service dates;
interruptions in service on third-party pipelines or facilities; general
economic, market or business conditions and the amplification of other
risks caused by volatile financial markets, capital constraints and
pervasive liquidity concerns; and other factors and uncertainties
inherent in the transportation, storage, terminalling and marketing of
crude oil and refined products as discussed in PAA's filings with the
Securities and Exchange Commission.
Plains All American Pipeline, L.P.
Director, Investor Relations