“This is a win-win deal that fits our strategy of optimising and expanding existing systems while exercising capital discipline,” stated Jeremy Goebel, Executive Vice President – Commercial, Plains All American. “This transaction expands long-term alignment with a natural shipper, supports and funds the expansion of the system, increases Plains’ net committed annual cash flow, and provides proceeds to fund our capital programme or lower debt.”
The Red River pipeline system extends from Cushing, Oklahoma to Longview, Texas. The expansion will increase the total system capacity from approximately 150 000 bpd to approximately 235 000 bpd through the addition of pumping capacity and is expected to be completed during the first half of 2020. Approximately 30% of the expanded Red River system capacity from Cushing to Hewitt, Oklahoma is owned by a third party in an undivided joint interest structure.
