The new pipeline will serve the increasing Mississippian Lime crude oil production in northern Oklahoma and southern Kansas.
The pipeline will originate in Alfalfa County near Alva, Oklahoma and terminate at the company’s Cushing, Oklahoma, crude oil storage facility.
The company has also entered into a long-term agreement to buy SandRidge Energy’s production from a multi-county area around the new pipeline system.
The new pipeline is expected to start up in mid-2013 and it will provide about 175,000 barrels per day of crude oil transportation capacity to the Cushing market.
Plains All American said the new line will share about 80 miles of right-of-way with its Medford-to-Cushing pipeline, and the company is also planning to extend the pipeline from Alva northward into Kansas as demand warrants.
