LONGVIEW — The owner of the Plains Atlas Terminal in Longview is teaming with a Tennessee-based company to build a $100 million pipeline to haul crude oil from Longview to refineries in Shreveport, Louisiana.
Plains All American Pipeline LP said Monday it formed a joint venture with Delek Logistics Partners LP to develop the 12-inch Caddo Pipeline, which will move 80,000 barrels of domestic crude per day to the Louisiana refineries and Delek's refinery in El Dorado, Arkansas.
It is the second part of a plan announced last year to increase capacity from Oklahoma to Shreveport through the Longview terminal.
Delek said the Caddo Pipeline, which it will own 50/50 with Plains, would be completed in mid-2016.
Uzi Yemin, Delek chairman and CEO, said in a statement that the Caddo Pipeline, along with a second pipeline venture announced Monday with Sugar Land-based Rangeland Energy LLC, would be the company's first major U.S. development projects.
"These crude oil pipelines will improve our ability to serve Delek US, which will participate as a shipper in both projects, as well as increasing our ability to provide logistics services to third parties," he said.
In November, Houston-based Plains said it was developing a 16-inch, 226-mile pipeline from the Plains Basin pipeline system at Duncan, Oklahoma, to Longview. As part of that project, Plains said it was seeking to increase capacity from Longview to Shreveport with a joint venture partner.
The Oklahoma-Longview pipeline, with a capacity of about 150,000 barrels per day, also is expected to be completed next year.
In February, Plains said that, despite plunging oil prices, it was continuing to build projects in the Permian Basin. The company saw profits jump in the fourth quarter by about 26 percent year-over-year, but said it expected a rough 2015.
Delek's deal with Rangeland Energy will build a 107-mile pipeline from the Texas-New Mexico border to Midland.
Plains All American is a publicly traded master limited partnership with a network of pipeline transportation, terminalling, storage and gathering assets in the U.S. and Canada. On average, it handles more than 4.1 million barrels per day of crude oil and natural gas on its pipelines.