Plains All American Pipeline, L.P. has finished a successful open season for additional capacity from the Delaware Basin to Cushing, OK., receiving sufficient committed volume from shippers to expand portions of its pipeline systems to accommodate a volume increase of approximately 120,000 barrels per day of movements from the Delaware Basin and Midland, TX to Cushing, OK.
The committed volume will move on a combination of new and existing pipelines. To accommodate the extra capacity, Plains All American Pipeline plans to extend its Sunrise Pipeline system, which currently originates at Midland, TX and connects with Colorado City, TX, by building approximately 180-miles of 24-inch pipeline from Colorado City, TX to Wichita Falls, TX. The remaining additional capacity will be provided by a combination of spare capacity and capacity enhancements to existing pipelines, which include capacity expansions to our Delaware Basin system of up to 200,000 barrels per day.
“We are pleased to announce the Sunrise expansion project which enhances the utilization of capacity in our existing system,” said Willie Chiang, US Chief Operating Officer for Plains All American Pipeline. “This expansion will allow us to meet shipper needs in a phased approach, while building in capability for further expansions. The project also 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 Plains’ and third-party terminals in Cushing, OK. Subject to timely receipt of necessary permits and regulatory approvals, the additional capacity is expected to be operational in early to mid-2019.