A subsidiary of Plains All American Pipeline LP reported a successful conclusion to the open season for additional capacity from the Delaware basin to Cushing, Okla. PAA has received sufficient committed volume from shippers to expand portions of its pipeline systems to accommodate a volume increase of 120,000 b/d of oil from the Delaware basin and Midland to Cushing.
The committed volume will move on a combination of new and existing pipelines. PAA plans to extend its Sunrise Pipeline system, which currently originates at Midland and connects with Colorado City, Tex., by building 180-miles of 24-in. pipeline from Colorado City to Wichita Falls, Tex.
The balance of the capacity will be provided by a combination of spare capacity and capacity enhancements to existing pipelines, which include capacity expansions to PAA’s Delaware basin system by as much as 200,000 b/d.
Willie Chiang, US chief operating officer for PAA, said the project “enhances our integration by enabling additional volume pull-through from our Permian basin gathering assets and provides incremental supply optionality for pipelines that transport crude oil from Cushing to end markets, including our Red River and Diamond pipelines.”
The pipeline system will deliver to PAA and third-party terminals in Cushing. The additional capacity is expected to be operational in early to mid-2019.