PAA and Delek Logistics form JV to build Caddo Pipeline

Plains All American Pipeline LP (NYSE: PAA) and Delek Logistics Partners LP (NYSE: DKL) have formed Caddo Pipeline LLC, a 50/50 joint venture, to develop the Caddo Pipeline, an 80-mile, 12-inch pipeline between Longview, Texas, and Shreveport, Louisiana.

The Caddo Pipeline will originate at the Plains Atlas Terminal in Longview and will have the capacity to move up to 80,000 barrels of domestic crude oil per day to supply refineries in the Shreveport area and Delek Logistics’ pipeline system supplying Delek US Holdings’ (NYSE: DK) El Dorado, Arkansas, refinery.

Under the agreement, PAA will construct and operate the Caddo Pipeline. The total project investment is expected to be approximately $100 million; the pipeline is supported by long-term shipper commitments and is expected to be completed in mid-2016.

 

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