OREANDA-NEWS. September 03, 2014. Plains All American Pipeline, L.P. (NYSE: PAA) today announced it will construct the Diamond Pipeline, a 440-mile, 20-inch crude oil pipeline that will provide capacity of up to 200,000 barrels per day of domestic sweet crude from the Plains Cushing, Okla. terminal to the Valero Memphis Refinery, and the ability to access Valero Energy Partner's Collierville pipeline.

The total project investment is expected to be approximately USD900 million and is expected to be completed in late 2016.

The Diamond Pipeline project is underpinned by a long-term shipping agreement with Valero and a related contract for storage and terminalling services at the Plains Cushing Terminal. Valero holds an option until January 2016 to become a partner in the Diamond Pipeline and purchase a 50 percent interest. Construction of the pipeline will enhance the refinery's long-term ability to produce gasoline, diesel and jet fuel for the greater Memphis and eastern Arkansas area.

Plains All American Pipeline, L.P. is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids ("NGL"), natural gas and refined products. PAA owns an extensive network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, PAA handles over 3.5 million barrels per day of crude oil and NGL on its pipelines. PAA is headquartered in Houston, Texas.