Plains All American Pipeline expands Permian activities

Plains All American Pipeline LP

Plains All American Pipeline LP (NYSE: PAA) reports on four projects that are part of its plan to significantly increase and expand its Permian Basin pipeline infrastructure over the next few years to keep pace with rising production volumes. These four projects, as well as several other projects currently under review, will result in aggregate investments of approximately $400 million to $500 million.

The projects are expected to be completed in stages throughout 2014 and early 2015 and include the construction of three new large-diameter (“trunk line”) pipelines that will increase the Partnership’s takeaway capacity in support of crude oil production growth in the Delaware and South Midland basins and will support gathering systems that the Partnership is constructing in the Avalon, Bone Spring and South Spraberry developments.

The first project consists of adding pumping capacity to the Partnership’s existing 20-inch Basin pipeline from Jal, New Mexico, to Wink, Texas (in Winkler County), increasing the pipeline’s capacity 100,000 barrels per day to 240,000 barrels per day, and constructing a new 40-mile, 12-inch pipeline with 100,000 barrels per day of pipeline capacity from Monahans to Crane, Texas, to supply volumes to the Longhorn pipeline, as well as the Partnership’s Cactus pipeline at McCamey.

The second project includes constructing a new 62-mile, 16- and 20-inch pipeline with 200,000 barrels per day of takeaway capacity from the South Midland Basin in Central Reagan and Central Upton counties to the origin of the Cactus pipeline at McCamey, Texas.

The third project involves constructing a new 80-mile, 20-inch pipeline between Midland and Colorado City, Texas, that will provide an additional 250,000 barrels per day of capacity to supply connecting carriers at Colorado City, including the new BridgeTex Pipeline.

The fourth project reflects the Partnership’s expectation, based on shipper demand, to increase the capacity of its Cactus pipeline project from 200,000 barrels per day to 250,000 barrels per day through the addition of pumping capacity.

The company also announced that it is constructing approximately 45 miles of new crude oil pipeline that will complement its existing Mississippian Lime pipelines and will further service growing production in the Mississippian Lime resource play. The pipeline is expected to be brought into service in the first quarter of 2014.

This project will extend PAA’s pipeline infrastructure into Logan County, Oklahoma, and farther into Grant County, Oklahoma, and will deliver crude oil to PAA’s terminal in Cushing, Oklahoma. The project includes the construction of 150,000 barrels of new tankage along the system and is supported by a long-term acreage dedication and a storage lease at PAA’s Cushing terminal from an area producer.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...