Plains All American Pipeline and Phillips 66 Partners announced on Tuesday their formed joint venture to expand the STACK oil pipelines in Oklahoma shale fields.
STACK Pipeline LLC, a 50/50 limited liability company, will own and operate a common carrier pipeline that transports crude oil from the Sooner Trend, Anadarko Basin, Canadian, and Kingfisher (STACK) counties shale play in northwestern Oklahoma to Cushing, Oklahoma.
Plains All American will contribute an existing terminal located in Cashion, Oklahoma with roughly 200,000 barrels of crude oil storage and an approximately 55-mile crude oil pipeline, the STACK pipeline, with a current capacity of nearly 100,000 barrels per day. Phillips 66 will pay $50 million to Plains for 50 percent ownership in the STACK pipeline and the Cashion terminal.
The joint venture will spend $15 million to expand the pipeline laterals, add storage space, and build a truck station.
“Plains is pleased to be entering into this strategic partnership with Phillips 66 Partners in one of the most exciting emerging resource plays in North America,” said Greg L. Armstrong, Chairman and CEO of Plains All American, according to a statement.