International pipe manufacturer Welspun Tubular and Diamond Pipeline LLC announced on Monday that Welspun received a $47 million order to assist with construction of a 440-mile 20-inch pipeline that will carry domestic sweet crude from the Cushing, Oklahoma storage facility to Valero’s refinery located in Memphis, Tennessee.
The $900 million Diamond Pipeline will be capable of transporting 200,000 barrels per day. The pipeline is designed to transport domestic sweet crude oil grades produced in the Permian Basin, Bakken and Mid-Continent regions.
It is anticipated that the project will create 1,500 new contract construction positions across Oklahoma and Arkansas as well as 15 permanent jobs at locations along the Diamond Pipeline upon completion while providing $11 million annually in property tax revenue to support communities along the pipeline route.
The pipeline will travel through several Oklahoma counties including Lincoln, Creek, Okmulgee, Muskogee, McIntosh, Haskell and Le Flore before entering Arkansas in order to arrive at the final destination of Memphis, Tennessee.
Diamond Pipeline LLC is a joint venture between Plains All American Pipeline and Valero. Welspun Tubular has manufacturing facilities near Little Rock, Arkansas
The pipeline is expected to be complete next year.
