CVR Refining, LP and Plains All American Pipeline, L.P. have announced the formation of a 50/50 joint venture – Midway Pipeline, LLC – which has acquired the approximately 100 mile, 16 in. Cushing to Broome pipeline system from Plains. The Cushing to Broome pipeline system connects CVR Refining's Coffeyville (Kansas) refinery, which has a rated capacity of 115 000 bpd to the Cushing (Oklahoma) oil hub. Midway will contract with Plains to continue its role as operator of the pipeline.
In a separate transaction, CVR Refining and Plains announced that CVR Refining has agreed to acquire the Cushing to Ellis crude oil pipeline system from Plains. The approximately 100 mile, 8 in. and 10 in. pipeline system helps link CVR Refining's 70 000 bpd Wynnewood (Oklahoma) refinery to Cushing. The acquisition is expected to close in the 2017 fourth quarter.
"We are excited to expand CVR Refining's logistics operations through our acquisition of the Cushing to Ellis pipeline and the Midway joint venture, which provides CVR Refining 50% ownership of the Cushing to Broome pipeline," said Jack Lipinski, Chief Executive Officer of CVR Refining. "These acquisitions ensure long-term access to Cushing-based crude oil for our Coffeyville and Wynnewood refineries, securing our mid continent edge of sourcing price advantaged crudes."
"We are pleased to announce the planned asset sale with CVR and to work as partners in the strategic joint venture," stated Willie Chiang, Chief Operating Officer – US of Plains All American Pipeline. "These transactions are part of our previously announced asset divestiture programme."
Read the article online at: https://www.worldpipelines.com/business-news/02112017/cvr-refining-and-plains-all-american-announce-5050-jv/