Plains All American is to construct the Diamond Pipeline, a 440 mile, 20 ins crude oil pipeline that will provide capacity of up to 200,000 bpd of domestic sweet crude from the Plains Cushing, OK terminal to the Valero Memphis Refinery, and the ability to access Valero Energy Partner’s Collierville pipeline. The total project investment is expected to be approximately US$900 million and is expected to be completed in late 2016.
The Diamond Pipeline project is underpinned by a long-term shipping agreement with Valero and a related contract for storage and terminal services at the Cushing terminal. Valero holds an option until January 2016 to become a partner in the Diamond Pipeline and purchase a 50 percent interest. Construction of the pipeline will enhance the refinery’s long-term ability to produce gasoline, diesel and jet fuel for the greater Memphis and eastern Arkansas area.
