Plains All American Pipeline LP will build the 440-mile, 20-inch Diamond Pipeline from Cushing, Okla., to Memphis, Tenn., the company announced on Aug. 21. The crude oil pipeline has a planned capacity of up to 200,000 barrels per day of domestic sweet crude from the Plains Cushing terminal to the Valero Memphis Refinery. The pipeline will also have the ability to access Valero Energy Partners LP’s Collierville Pipeline.
The project is underpinned by a long-term shipping agreement with Valero and a storage and terminaling services contract at the Plains Cushing terminal. Until January 2016, Valero holds an option to purchase a 50% interest in the Diamond Pipeline. The project’s expected completion date is in late 2016, and it is expected to require an investment of about $900 million.
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