Plains Crude Pipeline Cancels Rates at Points Originating in Louisiana, Mississippi

NEW YORK (Reuters) — Plains All American Pipeline has canceled tariffs on its reversed Capline crude oil pipeline for barrels previously originating at St. James, Louisiana, and Liberty, Mississippi, the midstream company said in a regulatory filing on Thursday.

The St. James and Liberty origination points in Plains’s Capline crude pipeline system have been taken out of service and are no longer in interstate commerce, according to the filing with the Federal Energy Regulatory Commission (FERC).

The delivery points from St. James and Liberty included Marshall County, Mississippi, and Marion County, Illinois, it said.

Plains said in November it expects the reversed Capline crude pipeline, from the U.S. Midwest to the Gulf Coast, to begin service in the first half of 2021 for light crude and the first half of 2022 for heavy crude.

Capline is the largest crude pipeline that currently runs from the Gulf Coast to refineries in the Midwest. Volumes on Capline, once a major artery for imports and Gulf of Mexico crude used by U.S. Midwest refiners, have declined sharply as the U.S. shale boom pushed inland crude to the East Coast and Gulf Coast.

Plains All American Pipeline, L.P., Marathon Petroleum Corporation and BP Oil Pipeline Company have launched a non-binding open season for the reversal of the Capline Pipeline, a 40-inch pipeline that transports 1.2 million barrels per day of crude oil from St. James, Louisiana, to Patoka, Illinois.

The non-binding open season will be managed on behalf of the Capline owners by the law firm of Caldwell Boudreaux Lefler PLLC and will run from Oct. 17, 2017, through Nov. 17, 2017. If Plains All American, Marathon and BP decide to proceed, southbound flow could be operational by the second half of 2022. 

Once in southbound service, the pipeline would have an initial capacity up to 300,000 barrels per day and would be able to receive crude oil from connecting carriers at Patoka. At St. James, shippers would have access to a distribution network that includes refineries, terminals, ships, barges and rail.

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