PAA, Phillips 66 partner to expand STACK crude pipeline

Plains All American Pipeline LP (PAA) and Phillips 66 Partners LP have formed the STACK Pipeline LLC joint venture to transport crude oil from the Sooner Trend, Anadarko basin, Canadian and Kingfisher counties (STACK) play in northwestern Oklahoma to Cushing. Plains contributed an existing terminal at Cashion, Okla., with about 200,000 bbl of crude storage and a 55-mile, 100,000-b/d crude oil pipeline (STACK Pipeline) to the joint venture, while Phillips 66 contributed $50 million cash in exchange for its 50% interest.

The JV plans to invest $15 million to expand the STACK pipeline by building a truck station at Highway 33, about 12 miles northwest of the Cashion terminal, a lateral pipeline to connect the Highway 33 station to the terminal, and 100,000 bbl of new storage at the terminal. PAA and Phillips are also considering both expanding STACK pipeline’s capacity by looping it between Cashion and Cushing and adding gathering sources to the system.

The STACK pipeline and the initial expansion are supported by multiple long-term contracts as well as legacy production gathered by existing Plains crude pipelines in western Oklahoma.

Phillips 66 noted that the system’s connection to Cushing would also provide another source of advantaged crude to it Ponca City, Okla., refinery.

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