Plains withdraws from Byhalia crude pipeline

Plains All American Pipeline "is no longer pursuing" its joint venture Byhalia Connection crude pipeline, according to a filing today to the US Securities and Exchange Commission.

The company cited lower US oil production caused by the Covid-19 pandemic, the filing said.

The pipeline was a joint venture with refiner Valero.

Plains previously delayed the start of construction of Byhalia Connection as it faced strong local opposition to the project.

The 45-mile (72km) crude pipeline would have stretched from Memphis, Tennessee, to Marshall County, Mississippi, and would have connected the 200,000 b/d Diamond pipeline to a reversed long-haul line to the Louisiana coast. Diamond is also co-owned by Valero.

Byhalia would have connected Diamond to the 1.2mn b/d Capline crude pipeline, which is being reversed to move crude south from Patoka, Illinois, to St James, Louisiana. Plains and Valero are doubling the capacity of Diamond to 400,000 b/d with a planned in-service date in the fourth quarter.

By Eunice Bridges