Plains All American To Build New Pipeline To Cushing
(Houston, TX) - Plains All American Pipeline LP has announced plans to construct a new pipeline from Medford, Okla. to Cushing, Okla to transport oil from northern Oklahoma and southern Kansas to the trading hub at Cushing.
A company news release says that PAA will transport the oil for Sandridge Energy.
FROM THE PLAINS ALL AMERICAN WEBSITE:
Plains All American Pipeline, L.P. (NYSE:PAA)
today announced it plans to construct a new 170-mile pipeline to service
the increasing Mississippian Lime crude oil production in northern
Oklahoma and southern Kansas. This pipeline, in conjunction with the
previously announced Medford-to-Cushing pipeline conversion, is designed
to provide approximately 175,000 barrels-per-day of crude oil
transportation capacity to the Cushing market and is expected to be
completed in mid-2013. PAA also announced it has entered into a
long-term agreement with SandRidge Energy (NYSE:SD) to purchase
SandRidge's production from a multi-county area around the new pipeline
"We are excited about the opportunity to expand our presence in the
Mississippian Lime play and to further develop our relationship with
SandRidge, which has a substantial acreage position in the area," said
Harry N. Pefanis, President and COO of Plains All American.
The Mississippian Lime pipeline will originate in Alfalfa County near
Alva, Okla. and terminate at PAA's Cushing, Okla. crude oil storage
facility. The new pipeline will share approximately 80 miles of
right-of-way with PAA's Medford-to-Cushing pipeline. PAA plans to extend
the pipeline from Alva northward into Kansas as demand warrants.