Plains All American Pipeline, Valero Energy Corp Terminate Proposed Acquisition by Valero of Certain Plains Assets

Plains All American Pipeline and Valero Energy Corporation announced Monday its plan to terminate a proposed acquisition by Valero of certain Plains assets after a California Attorney General filed suit seeking to block the transaction.

In the proposed acquisition, Valero was to acquire two of Plains' petroleum storage and distribution terminals located in Martinez and Richmond, California.

California Attorney General Xavier Becerra said that the transaction would have put all three Northern California petroleum-shipping hubs in the hands of refineries, which would have stifled competition and possibly raise gas prices.

Both Plains and Valero said in a statement that it was in their best interest to terminate the deal rather than "endure the continued uncertainty that a lengthy trial would create for the California-based employees and customers of the terminals, as well as the considerable expense associated with defending a taxpayer-funded lawsuit," according to a statement posted on Plains' website.

Source:
Houston Chronicle
Plains All American Pipeline

Diamond Pipeline Receives Approval from Arkansas Public Service Commission

Planned Diamond Pipeline Route ( Diamond Pipeline LLC )

Planned Diamond Pipeline Route (Diamond Pipeline LLC)

Diamond Pipeline LLC has received approval from the Arkansas Public Service Commission to build its 440-mile crude oil pipeline across five intrastate waterways, including the Arkansas and Mississippi rivers.

The commission filed its approval on August 31, a decision made after Diamond Pipeline settled a $6.6-million deal with Clarksville Light and Water Company last month to resolve conflict the utility had about the proposed pipeline pathway.

Under the deal, Diamond Pipeline will extend a pipe that feeds a water-intake facility that is north of the oil pipeline’s route, helping keep waterways safe from contamination.

The $900-million pipeline is a joint venture between Plains All American Pipeline and Valero Energy Corporation. It will move oil from Cushing, Oklahoma, to Valero’s refinery in Memphis, Tennessee and have a capacity of 200,000 barrels per day.

Construction is planned to start this year and finish in 2017.

Source:
Arkansas Online