Two Companies Joining Forces to Expand Red River Pipeline

Plains All American Pipeline has entered into a joint venture with Delek US, a Tennessee refining company, to increase the capacity of its 350 mile Red River Pipeline in Oklahoma and northeast Texas, the company said in a statement.

The pipeline runs between Cushing, Okla., and Longview, Texas. The plan is to boost pumping capacity along the pipeline from 150,000 barrels per day to approximately 235,000 barrels per day by the first half of 2020.

Delek is already a customer of the Red River Pipeline and is boosting its capacity on the Red River system from the current level of 35,000 barrels per day to 100,000 barrels per day. It agreed to pay $128 million to buy a 33 percent stake in a new joint venture named Red River Pipeline Co.

"This is a win-win deal that fits our strategy of optimizing and expanding existing systems while exercising capital discipline," Plains All American Executive Vice President Jeremy Goebel said in a statement. "This transaction expands long-term alignment with a natural shipper, supports and funds the expansion of the system, increases Plains' net committed annual cash flow, and provides proceeds to fund our capital program or lower debt."


Energy Transfer Crude Pipe to Resume After Spill Kept it Down for 3 Weeks

Energy Transfer LP completed testing on its West Texas Gulf Crude pipeline which is expected to resume Tuesday, a spokeswoman told Reuters in an emailed statement on Monday.

A spill extended maintenance work on the line which resulted in a prolonged outage that pressured regional crude prices in West Texas as the region grappled with limited pipeline takeaway capacity.

The spill involved an undisclosed amount of water and contained “a very small amount of residual crude oil,” the Dallas pipeline operator said in an email.

The West Texas Gulf pipeline runs from Colorado City to Longview, Texas. Originally, maintenance was scheduled for about 10 days starting on October 10, however a spill delayed the normal return of operations by over a week.

Julie Dermansky