Plains All American to build Eagle Ford oil pipeline

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, May 18 -- Plains All American Pipeline LP (PAA) plans to build a 300,000 b/d, 130-mile crude oil and condensate pipeline, a marine terminal facility, and 1.5 million bbl of storage to serve growing Eagle Ford production in South Texas. A long-term throughput agreement with Chesapeake Energy Marketing Inc., a subsidiary of Chesapeake Energy Corp., underpins the construction plans.

Chesapeake agreed earlier this month to a 10-year, 100,000 b/d shipping agreement with Enterprise Products Partners for capacity on the Phase II extension of EPP’s 350,000 b/d Eagle Ford oil pipeline (OGJ Online, May 6, 2011).

PAA also agreed to provide Chesapeake Midstream Development LP the opportunity to acquire up to a 25% joint ownership interest in the project. PAA and Flint Hills Resources have similarly executed a memorandum of understanding regarding Flint Hills’ potential joint ownership of the project. Flint Hills operates a 300,000 b/d refinery in Corpus Christi, Tex.

PAA expects the pipeline to enter service in fourth-quarter 2012 at a cost of about $330 million.

Contact Christopher E. Smith at chriss@ogjonline.com.



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

Whitepapers

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...