(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 system.
"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.