Plains All American to construct Diamond Pipeline

Plains All American Pipeline, L.P.has announced it will construct the Diamond Pipeline, a 440 mile, 20 in. crude oil pipeline that will provide capacity of up to 200 000 bpd of domestic sweet crude from the Plains Cushing, Oklahoma, terminal to the Valero Memphis Refinery, and the ability to access Valero Energy Partner's Collierville pipeline. The total project investment is expected to be approximately US$ 900 million and is expected to be completed in late 2016.

The Diamond Pipeline project is underpinned by a long-term shipping agreement with Valero and a related contract for storage and terminalling services at the Plains Cushing Terminal. Valero holds an option until January 2016 to become a partner in the Diamond Pipeline and purchase a 50% interest. Construction of the pipeline will enhance the refinery's long-term ability to produce gasoline, diesel and jet fuel for the greater Memphis and eastern Arkansas area.

Plains All American Pipeline, L.P. is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids, natural gas and refined products. PAA owns an extensive network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, PAA handles over 3.5 million bpd of crude oil and NGL on its pipelines. PAA is headquartered in Houston, Texas.

Adapted from press release by Hannah Priestley-Eaton

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