Plains All American Pipeline Announces New Permian Basin Expansion
OREANDA-NEWS. December 18, 2013. Plains All American Pipeline, L.P. (NYSE:PAA) announced 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 USD 400 million to USD 500 million. The four 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 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.
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