HOUSTON--(BUSINESS WIRE)--Plains All American Pipeline, L.P. (NYSE: PAA)
and Phillips 66 Partners LP (NYSE: PSXP) today announced the formation
of STACK Pipeline LLC (JV), a 50/50 limited liability company to own and
operate a common carrier pipeline that transports crude oil from the
Sooner Trend, Anadarko Basin, Canadian and Kingfisher Counties (STACK)
play in northwestern Oklahoma to Cushing, Okla. Under the JV agreement,
Plains contributed an existing terminal located at Cashion, Okla. with
approximately 200,000 barrels of crude oil storage (Cashion Terminal)
and an approximately 55-mile crude oil pipeline with a current capacity
of approximately 100,000 barrels per day (STACK Pipeline), while
Phillips 66 Partners contributed $50 million cash, which will be
distributed to Plains, in exchange for a 50 percent interest in the JV.
The JV plans to invest an estimated $15 million to expand the STACK
Pipeline by constructing a truck station at Highway 33, approximately 12
miles northwest of the Cashion Terminal, a lateral pipeline to connect
the Highway 33 station to the Cashion Terminal and 100,000 barrels of
storage at the Cashion Terminal. Additional expansion opportunities,
including expanding the capacity of the STACK Pipeline through looping
the pipeline from the Cashion Terminal to Cushing, as well as other
gathering opportunities, are also being pursued. The STACK Pipeline and
the initial expansion are supported by multiple long-term contracts as
well as legacy production gathered by existing Plains crude oil
pipelines that originate in western Oklahoma.
“Plains is pleased to be entering into this strategic partnership with
Phillips 66 Partners in one of the most exciting emerging resource plays
in North America,” said Greg L. Armstrong, Chairman and CEO of Plains
All American.
“We are pleased to announce this joint venture with Plains to develop a
strategic transportation asset in the emerging STACK play,” said Greg
Garland, Phillips 66 Partners chairman and CEO. “This asset is a
reliable and cost-effective transportation option for producers in the
STACK basin. The formation of the STACK joint venture is consistent with
our growth strategy and will provide Phillips 66 Partners with a
fee-based asset backed by third-party committed shipper volumes. The
system’s connectivity to Cushing also will provide another source of
advantaged crude to Phillips 66’s Ponca City Refinery.”
About Plains All American Pipeline
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 4.6 million barrels per day of crude oil and NGL in its
Transportation segment. PAA is headquartered in Houston, Texas.
About Phillips 66 Partners
Headquartered in Houston, Phillips 66 Partners is a growth-oriented
master limited partnership formed by Phillips 66 to own, operate,
develop and acquire primarily fee-based crude oil, refined petroleum
product and natural gas liquids pipelines and terminals and other
transportation and midstream assets. For more information, visit www.phillips66partners.com.
Forward Looking Statements
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expectations for the future that are forward-looking statements as
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variety of known and unknown risks, uncertainties, and other factors
that are difficult to predict and many of which are beyond management’s
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discussed in each registrant’s Annual Report on Form 10-K and other
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Commission. The registrants undertake no obligation to update or revise
any forward-looking statement to reflect new information or events.