Plains to build northern Oklahoma crude oil pipeline

Plains All American Pipeline says it will construct a new 170-mile pipeline to service the increasing Mississippian Lime crude oil production in northern Oklahoma and southern Kansas.

This pipeline, in conjunction with the previously announced Medford-to-Cushing pipeline conversion, is designed to provide approximately 175,000 bpd of crude oil transportation capacity to the Cushing market.

It is expected to be completed in mid-2013, the company said.

Plains also announced a long-term agreement with SandRidge Energy to purchase SandRidge’s production from a multi-county area around the new pipeline system.

“We are excited about the opportunity to expand our presence in the Mississippian Lime play and to further develop our relationship with SandRidge, which has a substantial acreage position in the area,” said Harry N. Pefanis, president and chief operating officer of Plains All American.

The Mississippian Lime pipeline will originate in Alfalfa County near Alva, Okla. and terminate at the Plains crude oil storage facility in Cushing, Okla.

The new pipeline will share approximately 80 miles of right-of-way with the Medford-to-Cushing pipeline of Plains.

Plains plans to extend the pipeline from Alva northward into Kansas as demand warrants, it said.

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