Plains All American Nears Completion Of Permian Basin Projects

September 2012, Vol. 239 No. 9

Plains All American Pipeline, L.P. has completed or is nearing completion of construction of crude oil pipeline projects that total more than 145 miles and are expected to provide 200,000 bpd of additional takeaway capacity from the Bone Spring, Spraberry and Wolfberry producing areas in nine West Texas counties. Estimated cost of the pipelines is $135 million.

“These projects provide additional pipeline gathering capacity in areas with significant production growth and will have the ability to supply crude oil to Basin Pipeline, Longhorn Pipeline and/or West Texas Gulf Pipeline,” said Harry Pefanis, president and COO of Plains All American.

The 15-mile Barstow pipeline project, which was recently brought into service, extends south from PAA’s Bone Spring pipeline and will initially provide 50,000 bpd of take-away capacity to service growing production in Ward, Reeves and Pecos counties. The Barstow pipeline will receive crude oil from two truck-injection stations and has a long-term delivery commitment from Hoover Energy’s Pecos Crossing pipeline.

The 50-mile North Spraberry pipeline will extend northward from Midland, TX to Martin County and west to Andrews County to transport Wolfberry and Spraberry production. The North Spraberry pipeline will have an initial capacity of 40,000 bpd and is expected to be brought into service in stages through the end of 2012.

The South Spraberry trunk line consists of a 50-mile pipeline extending from Midland, to northwest Reagan County and connecting to PAA’s existing Spraberry Pipeline that runs to southeast Reagan County. The South Spraberry trunk line will provide 60,000 bpd of capacity for Glasscock, Reagan, Irion and Crockett counties.

Included with the South Spraberry trunk line project are two gathering laterals: one line extending to Best and another line extending to Barnhart. A 15-mile pipeline providing 50,000 bpd of capacity will be constructed from Garden City to the South Spraberry trunk line. The South Spraberry segments are expected to be in service by year end.