Holly Energy Partners LP and Plains All American Pipeline LP announced Oct. 3 the formation of Cushing Connect Pipeline & Terminal LLC, a 50/50 joint venture for the development and construction of a 160,000-barrel-per-day crude oil pipeline and the ownership and operation of 1.5 million barrels of crude oil terminal in Cushing, Okla.
The crude oil pipeline would connect the Cushing, Okla., hub to a HollyFrontier Corp. subsidiary-owned refining facility located in Tulsa, Okla., according to the news release. The pipeline is scheduled to begin service during the first quarter of 2021, while the terminal is expected to start-up in the second quarter of 2020.
The venture would contract an affiliate of Holly Energy Partners to handle the construction and operation of the crude oil pipeline and a Plains' affiliate to manage the terminal's operations. The venture has an investment of approximately $130 million, including the $40 million contribution from Plains' existing terminal.
"This investment expands our relationship with a key operational hub service customer and provides additional long-term alignment on movements to the Tulsa refinery," said Plains' executive vice president, commercial, Jeremy Goebel.
Plains provides logistics services for crude oil, NGLs and gas and handles more than 6 million bbl/d of crude oil and NGL. Holly Energy Partners is a Texas-based company that provides petroleum product and crude oil services.
