Holly Energy, Plains All American Launch Cushing Connect JV

Holly Energy, Plains All American Launch Cushing Connect JV
The joint venture will develop and construct a new 160,000 barrel per day crude oil pipeline.

Holly Energy Partners LP and Plains All American Pipeline have formed a 50/50 joint venture, Cushing Connect Pipeline & Terminal LLC, to develop and construct a new 160,000 barrel per day crude oil pipeline. In Oklahoma it will connect the Cushing crude oil hub to the Tulsa refining complex owned by a subsidiary of HollyFrontier Corp. and the ownership and operation of 1.5 million barrels of crude oil storage in Cushing.

The terminal is expected to be in service during the second quarter of 2020, while the pipeline should be in service during the first quarter of 2021.

The total investment will be shared among the partners and is estimated to total about $130 million, including the existing JV Terminal contributed by Plains (valued at ~$40 million).

“The new joint venture will provide growth to HEP by insourcing logistics spend and provide the capability to supply 100 percent of HFC’s Tulsa Refinery crude throughput,” said George Damiris, chief executive officer of the general partner of Holly Energy Partners.

“This investment expands our relationship with a key operational hub service customer and provides additional long-term alignment on movements to the Tulsa refinery,” Jeremy Goebel, Executive Vice President – Commercial, Plains All American, said In a released statement.

Holly Energy Partners provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including HollyFrontier Corp. Holly Energy owns and/or operates petroleum product and crude gathering pipelines, tankage and terminals in Texas, New Mexico, Washington, Idaho, Oklahoma, Utah, Nevada, Wyoming and Kansas as well as refinery processing units in Kansas and Utah.

Plains All American Pipeline owns a 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 U.S. and Canada. On average, it handles more than 6 million barrels per day of crude oil and NGL in its Transportation segment.

To contact the author, email Bertie.taylor@rigzone.com.


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