Plains to expand Bone Spring, Permian takeaway capacity

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, June 17 -- Plains All American Pipeline LP is undertaking a construction and expansion project serving the Bone Spring play in the Delaware basin of West Texas. Plains’ Bone Spring project includes adding 6 miles of 6-in. OD pipe to an existing system and constructing 20 miles of 12-in. OD pipe.

Initial capacity of the new lines will be 65,000 b/d, moving production primarily from Ward, Winkler, Reeves, and Loving counties. These pipelines will interconnect with Plains’ Basin system and the company also will build as much as 100,000 bbl of new storage and terminalling capacity to be brought online in stages.

Plains expects the project to service by yearend, supported by long-term agreements with Anadarko Petroleum Corp. and Chesapeake Energy Corp.

Plains owns and operates 3,500 miles of oil gathering and trunk pipelines and 20 million bbl of oil storage capacity serving the Permian basin. It says it transported about 470,000 b/d of crude out of the Permian basin in 2010.

Plains announced plans in May to build a 300,000 b/d, 130-mile pipeline delivering Eagle Ford shale crude to market (OGJ Online, May 18, 2011).

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



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