Plains All American to construct $33 million Oklahoma-Kansas pipeline

Ray Tyson

Petroleum News Houston correspondent

Plains All American Pipeline, through its subsidiary Plains Pipeline L.P., said it has signed a pipeline transportation service agreement with Coffeyville Resources Refining & Marketing to construct, own and operate a 100-mile, 16-inch pipeline that will transport crude oil from Plains’ terminal in Cushing, Okla., to the Broom Station in Caney, Kan. At Caney, the new pipeline will connect to an existing third-party pipeline that will transport crude oil to Coffeyville Resources’ refinery in Coffeyville. The project will cost about $33 million, Houston-based Plains said April 23.

The new pipeline is subject to a long-term agreement that provides the point of origination for shipments on the pipeline will be Plains’ Cushing Terminal. In addition the agreement requires Coffeyville Resources to meet minimum shipment requirements during the initial five-year term of the contract.