CVR Refining Forms JV with Plains, Acquires Pipeline Assets

CVR Refining, LP and Plains All American Pipeline, L.P. today announced the formation of a 50/50 joint venture, Midway Pipeline, LLC, which has acquired Plains All American’s Cushing to Broome pipeline system, an approximately 100-mile, 16-inch pipeline system that connects CVR Refining’s Coffeyville, Kansas, refinery, to the Cushing, Oklahoma, oil hub. Under the terms of the agreement, Midway Pipeline will continue its role as operator of the pipeline.

In a separate transaction, the companies announced that CVR Refining has agreed to acquire the Cushing to Ellis crude oil pipeline system. The approximately 100-mile, 8-and 10-inch pipeline system will help link CVR Refining’s Wynnewood, Oklahoma, refinery to Cushing. The acquisition is expected to close in the fourth quarter of 2017.

“We are excited to expand CVR Refining’s logistics operations through our acquisition of the Cushing to Ellis pipeline and the Midway joint venture, which provides CVR Refining 50 percent ownership of the Cushing to Broome pipeline,” said Jack Lipinski, chief executive officer of CVR Refining. “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 crudes.”