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Permian Basin Oil and Gas Magazine

PBOG is the Official Publication of the Permian Basin Petroleum Association and is published monthly by Zachry Publications, LP.

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Plains, Delek joint venture to expand capacity of Red River pipeline

June 6, 2019 by PBOG

Houston-based Plains All American Pipeline said May 28 it launched a new joint venture with Tennessee refining company Delek US to boost capacity of its 350-mile Red River pipeline in northeast Texas and Oklahoma. Delek purchased a 33 percent interest in Red River for $128 million; Plains will continue to operate the Red River system. The project will boost capacity of the 350-mile pipeline from 150,000 barrels per day to about 235,000 barrels per day by the first half of 2020. As owner and operator of a refinery in Tyler, Delek is already a customer of Red River. Plains’ announcement said, “The expansion enables additional volume pull-through from Cushing and the Permian to the U.S. Gulf Coast markets.”

 

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