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Plains All American to bring forward Permian pipes amid bottlenecks

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World Pipelines,

Plains All American Pipeline LP said two West Texas crude pipeline projects would begin partial operations slightly ahead of their original schedules as bottlenecks in the region depress prices to the weakest level in four years, according to reports from Reuters.

One of the two, the Sunrise expansion project, is expected to go into partial service in 4Q18, while the Cactus II line will begin partial service in 3Q19, the company said on a conference call late on Tuesday.

The Sunrise extension will add approximately 500 000 bpd of capacity from Midland to Colorado City and Wichita Falls, Texas, and provide connections to the oil storage hub of Cushing, Oklahoma.

Full service on the 670 000 bpd Cactus II line from the Permian basin to Corpus Christi is targeted for April 2020. By late this year, a portion of the line, from Wink, to McCamey, Texas, will begin partial service, the company said.

“We expect continued growth across our gathering and intrabasin pipeline systems (in the Permian) and to operate at or near capacity on our takeaway pipelines throughout the second half of the year,” said Greg Armstrong, Plains Chief Executive.

The Permian basin in West Texas and western Canada has been grappling with takeaway constraints as oil production in the region has outpaced pipeline capacity, reports Reuters.

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