Phillips 66 and Plains All American have formed a 50/50 joint venture to own and operate a pipeline that will carry oil from Oklahoma’s STACK play to Cushing, Oklahoma. Plains has contributed a 200,000-barrel crude terminal in Cashion, Oklahoma, and a 55-mile, 100,000-barrel-per-day pipeline to the joint venture. Phillips 66 has paid Plains $50 million for its ownership interest.
The companies plan to invest $15 million to add a truck station near the Cashion terminal, a pipeline from the station to the terminal and 100,000 barrels of additional storage at the terminal. Additional expansions could include looping the STACK pipeline from the terminal to Cushing.
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