PAA to expand Permian, Mississipian Lime crude pipeline systems

Plains All American Pipeline LP (PAA) announced four projects to expand its Permian basin pipeline infrastructure over the next few years. PAA expects the four projects to be completed in stages throughout 2014 and early 2015. They include construction of three large-diameter pipelines increasing PAA’s takeaway capacity in the Delaware and South Midland basins and supporting gathering systems it’s building in the Avalon, Bone Spring, and South Spraberry developments.

The first project consists of adding pumps to PAA’s existing 20-in. OD Basin pipeline from Jal, NM, to Wink, Tex., increasing its capacity 100,000 b/d to a total 240,000 b/d. The first project also includes building a 100,000-b/d, 40-mile, 12-in. OD pipeline from Monahans to Crane, Tex., supplying both the Longhorn pipeline the origin of PAA’s Cactus pipeline at McCamey, Tex.

The second project includes building a 62-mile, 16-in. and 20-in. OD pipeline with 200,000 b/d capacity from the South Midland basin in Central Reagan and Central Upton counties, Tex., to McCamey.

The third project involves building a 80-mile, 20-in. OD pipeline between Midland and Colorado City, Tex., moving 250,000 b/d to supply connecting carriers at Colorado City, including the BridgeTex Pipeline.

The fourth project will add pumping to increase capacity of the Cactus pipeline to 250,000 b/d from 200,000 b/d to meet PAA-expected increases in shipper demand.

PAA also is building about 45 miles of crude oil pipeline to complement its existing Mississippian Lime pipelines. The company expects the line to enter service first-quarter 2014. This project will extend PAA’s pipeline infrastructure into Logan County, Okla., and farther into Grant County, Okla., and will deliver crude oil to PAA’s terminal in Cushing, Okla. The project includes building 150,000 bbl of tankage along the system and is supported by a long-term acreage dedication and a storage lease at PAA’s Cushing terminal from an area producer.

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

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