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PAA announces open season for crude oil pipeline

Published by
World Pipelines,

A subsidiary of Plains All American Pipeline, L.P. (PAA) has announced that it is conducting an open season for a crude oil pipeline capacity from the Permian Basin to Cushing (Oklahoma).

Origin points of the pipeline will be Midland (Texas) and Colorado City (Texas). Depending on the results of the open season, committed volumes will move on a combination of new and existing pipelines. The open season provides an opportunity for potential shippers to offer long term volume commitments in exchange for firm transportation on the pipeline.

The pipeline will deliver to PAA’s terminal in Cushing. Subject to sufficient commitments from shippers and receipt of any necessary permits and regulatory approvals, the pipeline could be operational in mid-2019.

By submitting a binding proposal, bidders are offering to enter into a long term throughput and deficiency agreement for pipeline capacity. Potential shippers must sign confidentiality agreements before receiving the open season documents.

The open season begins on 18 April and will end at 12 pm (CT) on 30 May.

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US pipeline news Crude oil pipeline news Onshore pipeline news