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Plains converting Oklahoma LPG pipeline to crude

Plains All American Pipeline announced Thursday that it is converting an existing Oklahoma liquefied petroleum gas (LPG) pipeline into crude oil service.

The pipeline, which extends from Medford, Okla. to PAA’s crude oil terminal facility in Cushing, Okla., will provide an initial crude oil throughput capacity of 12,000 bpd by January 2012 and will be expanded to 25,000 bpd by July 2012.

“Converting and expanding this pipeline provides timely take-away capacity for growing crude oil production in the Mississippian Lime formation in northern Oklahoma and southern Kansas,” said Harry N. Pefanis, president and chief operating officer of Plains All American.

“This project extends our commitment to service Mississippian producers and is one of a number of projects PAA is progressing to service the growing infrastructure needs in this area and multiple resource plays throughout North America,” he added.

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