Plains All American Pipeline has announced the expansion and joint venture of its Red River Pipeline with Delek Logistics. 

Delek Logistics Partners has purchased from a Plains’ subsidiary a 33 percent ownership interest in a new Red River Pipeline Company joint venture for $128 million. 

Plains retained a 67 percent interest in the joint venture and will continue to operate the Red River system. In support of this expansion, Delek US increased its long-term throughput and deficiency (T&D) agreement on the Red River system from an existing 35,000 barrels per day to 100,000 barrels per day. The expansion enables additional volume pull-through from Cushing and the Permian to the U.S. Gulf Coast markets, providing additional supply optionality for shippers.

The Red River pipeline system extends from Cushing, Oklahoma to Longview, Texas. The expansion will increase the total system capacity from approximately 150,000 barrels per day to approximately 235,000 barrels per day through the addition of pumping capacity and is expected to be completed during the first half of 2020. Approximately 30 percent of the expanded Red River system capacity from Cushing to Hewitt, Oklahoma is owned by a third party in an undivided joint interest structure.

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31st May 2019