Plains All American, Phillips 66 Partners Form STACK Pipeline Joint Venture

Plains All American Pipeline and Phillips 66 Partners have formed STACK Pipeline, a 50/50 limited liability company, to own and operate a common carrier pipeline that transports crude oil from the Sooner Trend, Anadarko Basin, Canadian and Kingfisher counties (STACK) play in northwestern Oklahoma to Cushing.

Under the joint venture agreement, Plains contributed an existing terminal at Cashion with 200,000 bbls of crude oil storage and the 100,000 bpd, 55-mile crude STACK pipeline. Phillips 66 Partners will pay  $50 million cash to Plains for a 50% interest in the JV.

“The formation of the STACK joint venture is consistent with our growth strategy and will provide Phillips 66 Partners with a fee-based asset backed by third-party committed shipper volumes,” said Greg Garland, Phillips 66 Partners chairman and CEO. “The system’s connectivity to Cushing also will provide another source of advantaged crude to Phillips 66’s Ponca City Refinery.”

 

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