Pipeline

Delek Logistics Partners is partnering with two companies to build new pipeline projects in Texas, US.

Houston-based Plains All American Pipeline will build the new $100m Caddo crude oil pipeline in a 50-50 joint venture with Delek.

The 12-inch, 80-mile Caddo pipeline will start in Longview, Texas with destinations in the Shreveport, Louisiana area.

"These joint ventures mark our first development projects and should create additional growth for the partnership."

The pipeline, which is expected to be completed in mid-2016, will have a capacity of about 80,000 barrels per day of light sweet crude oil.

In a separate project, Rangeland Energy has also partnered with Delek to construct the 107-mile Rangeland Integrated Oil Pipeline from the Texas-New Mexico border to Midland, Texas.

The project is anticipated to be completed in the first half of 2016. Delek will have a 33% ownership in the pipeline and supporting terminals.

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The Rangeland pipeline will have an initial capacity of 55,000 barrels per day and an expanded capacity of 85,000 barrels per day or more with further capital investments.

The project will also feature terminals at each end of the pipeline, injection points and storage tanks.

Delek Logistics’ general partner chairman and chief executive officer Uzi Yemin said: "These joint ventures mark our first development projects and should create additional growth for the partnership.

"In addition, these crude oil pipelines will improve our ability to serve Delek US, which will participate as a shipper in both projects, as well as, increasing our ability to provide logistics services to third parties."

Image: Delek Logistics Partners will have stakes in two Texas pipeline projects. Photo: Courtesy of puttsk/FreeDigitalPhotos.net.