New pipeline planned for Cushing delivery

Feb. 8, 2012 at 7:22 AM

HOUSTON, Feb. 8 (UPI) -- A 170-mile oil pipeline planned for the U.S. south will add to the transport capacity at the Cushing oil hub in Oklahoma, a pipeline company announced.

Plains All American Pipeline, which owns roughly 16,000 miles of pipelines in the United States, announced plans to build a 170-mile pipeline through Oklahoma and Kansas. The pipeline is designed to provide around 175,000 barrels per day of transport capacity for markets serviced by the Cushing hub.

The pipeline would service the Mississippian Lime crude oil play. The pipeline would share a right-of-way with an existing pipeline to Cushing, the company said in a statement.

Plains said the pipeline would carry crude oil produced by SandRidge Energy. It would go into service next year.

TransCanada, which wants to build the Keystone XL oil pipeline from tar sands projects in Alberta province, said more U.S. pipelines are needed to address bottlenecks at the Cushing hub. Pipeline company Enbridge said it was working to reverse the flow of oil through its Seaway crude oil pipeline to get oil away from Cushing by the second quarter of this year.

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