PAA to expand Delaware basin crude pipeline systems

Feb. 5, 2015
Plains All American Pipeline LP (PAA) plans to build two Delaware basin crude oil pipelines and related gathering systems, to expand its existing Blacktip pump station, and to build a 20-in. OD loop line from Blacktip station to Wink, Tex.

Plains All American Pipeline LP (PAA) plans to build two Delaware basin crude oil pipelines and related gathering systems, to expand its existing Blacktip pump station, and to build a 20-in. OD loop line from Blacktip station to Wink, Tex. These projects in West Texas and New Mexico will support PAA’s previously announced 24-in. Basin Pipeline loop from Wink to Midland, Tex., and a 12-in. pipeline from Monahans, Tex., to Crane, Tex.

The 32-mile, 12-in. OD Avalon Extension will extend the Avalon pipeline, which extends from the PAA Avalon station in northwest Loving County to its Blacktip station in southeast Loving County, Tex., into Culberson County, Tex., transporting as much as 100,000 b/d. PAA expects to bring the line and two truck unloading terminals at Orla, Tex., and at Highway 285 into service in phases beginning in July 2015, with total system completion, including the associated gathering system, scheduled for September.

The 60-mile, 16-in. OD State Line pipeline will connect Culberson County to Wink, extending along the Texas-New Mexico state border. State Line will connect Delaware basin production in southern Eddy and Lea Counties, NM, and northern Loving, Reeves, and Culberson counties, Tex., to PAA’s existing Permian basin assets, moving as much as 150,000 b/d of batched crude and condensate. PAA expects to bring it into service in phases beginning early-2016 and ending mid-2016, with completion of the associated gathering system anticipated by early-2016.

Shipper commitments back both Avalon Extension and State Line.

The Blacktip station expansion and pipeline loop will include building 200,000 bbl of operational tankage and associated pumping to provide an additional 200,000 b/d of pipeline capacity from the station to Wink. PAA expects to complete the Blacktip station expansion and loop pipeline in August.

PAA in 2013 announced plans that included building three large-diameter pipelines increasing its takeaway capacity in the Delaware and South Midland basins and supporting gathering systems it was building in the Avalon, Bone Spring, and South Spraberry developments, the last of which was scheduled to be completed early this year (OGJ Online, Dec. 11, 2013).

Christopher E. Smith at [email protected].