February 2014, Vol. 241 No. 2


Plains All American To Build Permian Basin And Mississippi Lime Infrastructure

Plains All American Pipeline, L.P.announced four projects that are part of its plan to increase its Permian Basin pipeline infrastructure to keep pace with rising production volumes. The four projects, as well as several others under review, will result in investments of $400-500 million.

They are expected to be completed in stages throughout 2014 and early 2015 and include construction of three large-diameter trunkline pipelines that will increase the Partnership’s takeaway capacity in support of crude oil production growth in the Delaware and South Midland basins. They will support gathering systems the Partnership is constructing in the Avalon, Bone Spring and South Spraberry developments.

The first project consists of adding pumping capacity to the Partnership’s existing 20-inch Basin pipeline from Jal, NM to Wink, TX, increasing capacity 100,000 bpd to 240,000 bpd, and constructing a 40-mile, 12-inch pipeline with 100,000 bpd of capacity from Monahans to Crane, TX to supply volumes to the Longhorn pipeline as well as the Partnership’s Cactus pipeline at McCamey.

The second project includes constructing a 62-mile, 16- and 20-inch pipeline with 200,000 bpd of takeaway capacity from the South Midland Basin in central Reagan and central Upton counties to the origin of the Cactus pipeline at McCamey.

The third involves constructing a 80-mile, 20-inch pipeline between Midland and Colorado City, TX that will provide an additional 250,000 bpd of capacity to supply connecting carriers at Colorado City including the new BridgeTex Pipeline.

The fourth project reflects the Partnership’s expectation, based on shipper demand, to increase capacity of its Cactus pipeline project from 200,000 to 250,000 bpd through added pumping capacity.

In other news, Plains All American announced it is constructing 45 miles of crude oil pipeline that will complement its existing Mississippian Lime pipelines and will service growing production in the Mississippian Lime resource play. The pipeline will be in service shortly.


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