Plains All American to build Permian crude pipeline

Plains All American Pipeline LP is building the Cactus Pipeline, a 310-mile, 20-in. OD crude oil pipeline in Texas from McCamey in Upton County to Gardendale in LaSalle County. Plains All American expects the Cactus Pipeline to enter service first-quarter 2015.

A long-term letter of intent with a third-party anchor shipper will absorb a majority of the pipeline's 220,000-b/d capacity and Plains All American is in discussions with several other potential shippers for the balance.

Cactus will transport both sweet and sour crude oil from the Permian basin to the Plains All American-Enterprise Products Partners Eagle Ford Joint Venture Pipeline. The Eagle Ford JV line directly serves the Three Rivers and Corpus Christi markets and can supply the Houston-area through a connection to the Enterprise South Texas Crude Oil Pipeline.

Crude delivered on Cactus will have access to rail loading at Plains All American's Gardendale station and access to the Eagle Ford JV barge dock facility in the Corpus Christi area. Cactus’ capacity can be increased as demand warrants.

Plains All American expects the project to cost $350-375 million.

Kinder Morgan Energy Partners LP earlier this month announced plans to build a 277,000 b/d crude oil pipeline from the Permian basin to California (OGJ Online, Apr. 9, 2013).

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

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