Plains All American Pipeline LP (NYSE: PAA) plans to construct a new 16-inch, 226-mile pipeline originating from the Plains Basin pipeline system at Duncan, Oklahoma, and largely following an existing Plains right-of-way to Longview, Texas. The pipeline is supported by long-term commitments and is expected to be completed by the second quarter of 2016.
The new pipeline will also have access to Cushing, Oklahoma-sourced crude oil through connections with the Plains Cherokee and Red River pipeline systems. The pipeline capacity will be approximately 150,000 barrels per day (bpd) of WTI crude oil, and the pipeline will have the ability to deliver crude oil to local refineries in Oklahoma and in East Texas, and to the Plains Longview terminal, which is connected to third-party pipelines.
As part of the project, capacity for an existing Plains pipeline system from Longview to Shreveport, Louisiana, will be increased from 40,000 bpd to 80,000 bpd with a joint venture partner.