Plains All American announces Permian Basin expansion activities

Plains All American Pipeline, L.P. have 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 US$ 400 million to US$ 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 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 in. Basin pipeline from Jal, New Mexico to Wink, Texas increasing to pipeline's capacity from 100 000 - 240 000 bpd, and constructing a new 40 mile 12 in. pipeline with 100 000 bpd 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 construction of a new 62 in. mile, 16 in. and 20 in. pipeline with 200 000 bpd of takeaway capacity from the South Midland Basin in Central Reagan and Central Upton counties to the origin of the Cacrus pipeline at McCamey, Texas.
• The third project involves constructing a new 80 mile, 20 in. pipeline between Midland and Colorado City, Texas that will provide an additional 250 000 bpd 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 - 250 000 bpd through the addition of pumping capacity.

Edited from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/10122013/plains_all_american_announces_permian_basin_expansion_activities/