Plains All American Pipeline, L.P. (NYSE: PAA) today announced plans to construct two new Delaware Basin pipelines and related gathering systems, to expand its existing Blacktip station and to construct a 20” loop line from Blacktip station to Wink, Texas. These new infrastructure builds in West Texas and New Mexico will support PAA’s previously announced 24” Basin Pipeline loop from Wink to Midland and new 12” pipeline from Monahans to Crane. The new Delaware Basin pipelines, Avalon Extension and State Line, are backed by producer commitments.
The 32-mile, 12” Avalon Extension pipeline will extend the Avalon pipeline, which runs from the PAA Avalon station in northwest Loving County to its Blacktip station in southeast Loving County, Texas, into Culberson County, Texas, and is capable of transporting up to 100,000 barrels per day (bpd) of crude oil from northern Loving and Culberson Counties. The line and two new truck unloading facilities at Orla, Texas and at Highway 285 are expected to be brought into service in phases beginning in July 2015, with total system completion, including the associated gathering system, scheduled for September 2015.
The 60-mile, 16” State Line pipeline will connect Culberson County to Wink, Texas, running along the Texas-New Mexico state line. State Line will connect Delaware Basin production in southern Eddy and Lea Counties in New Mexico and northern Loving, Reeves and Culberson Counties in Texas to the existing network of PAA Permian Basin assets. The pipeline will be capable of transporting up to 150,000 bpd of batched crude oil and condensate. State Line is expected to be brought into service in phases beginning in early 2016 and concluding in mid-2016, with completion of the associated gathering system anticipated by early 2016.
The Blacktip station expansion and pipeline loop will include building 200,000 barrels of new operational tankage and associated pumping to provide an additional 200,000 bpd of pipeline capacity from the Blacktip station to Wink. The Blacktip station expansion and loop pipeline are expected to be completed in August 2015.