Plains All American to boost Midcontinent crude capacity

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Nov. 3 -- Plains All American Pipeline LP announced its Midcontinent Expansion Project, providing additional takeaway capacity for increased crude production in the Cleveland Sand, Granite Wash, and Colony Wash development areas.

The MEP expansion includes connecting Plains’ Cushing, Okla., terminal and segments of its Kansas and Colorado pipeline systems to the White Cliffs pipeline, entering into a 10-year capacity lease with the White Cliffs pipeline, and completing capacity expansions to three segments of Plains’ Oklahoma pipeline system.

MEP will add as much as 38,000 b/d on Plains’ Kansas and Oklahoma pipeline systems at an estimated cost of about $25 million. The project will be completed in stages, with Plains expecting final completion by third-quarter 2011.

Plains last year bought receiving pipelines, a manifold system, and 400,000 bbl of crude oil storage capacity at Holly Corp.’s 85,000-b/d refinery in Tulsa (OGJ Online, Oct. 22, 2009).

Newfield Exploration Co., Houston, is evaluating as many as 30 horizons in the Granite Wash (OGJ Online, July 23, 2010), while Linn Energy LLC in July completed what may be the highest rate well reported in the trend at a 24-hr rate of 27 MMcfd of gas and 3,190 b/d of condensate.

Contact Christopher E. Smith at chriss@ogjonline.com.

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