CVR Refining and Plains All American Pipeline have formed a joint venture to acquire a 100-mile pipeline system.
The joint venture – Midway Pipeline – acquired the Cushing to Broome pipeline system from Plains. The pipeline connected CVR Refining's Coffeyville, Kansas, refinery to the Cushing hub.
Midway will contract with Plains to continue its role as operator of the pipeline.
Separately, CVR and Plains announced that CVR will acquire the Cushing to Ellis crude oil pipeline system from Plains. This system helps link CVR's 70,000 barrel-per-calendar day Wynnewood, Oklahoma refinery to Cushing. This acquisition is expected to close in the fourth quarter of 2017.
Jack Lipinski, CEO of CVR Refining, says: 'These acquisitions ensure long-term access to Cushing-based crude oil for our Coffeyville and Wynnewood refineries, securing our mid-continent edge of sourcing price-advantaged crude.'
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