Plains All American to Move Forward on Delaware Basin Pipeline Expansion

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A subsidiary of Plains All American Pipeline LP has completed a successful open season for additional capacity from the Delaware Basin to Cushing, Oklahoma. The company announced July 18 that it has received sufficient committed volume from shippers to expand portions of its pipeline systems to accommodate a volume increase of approximately 120,000 barrels per day (bpd) from the Delaware Basin and Midland, Texas, to Cushing.

The committed volume will move on a combination of new and existing pipelines. The Plains All American plans to extend its Sunrise Pipeline system, which currently originates at Midland and connects with Colorado City, Texas, by building approximately 180-miles of 24-in. pipeline from Colorado City to Wichita Falls, Texas. 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 our Delaware Basin system of up to 200,000 bpd.

“We are pleased to announce the Sunrise expansion project which enhances the utilization of capacity in our existing system,” said Willie Chiang, U.S. chief operating officer for Plains. “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.”

RELATED: Plains All American Seeks Support for Permian Basin to Cushing Pipeline

The pipeline system will deliver to Plains’ and third-party terminals in Cushing. Subject to timely receipt of necessary permits and regulatory approvals, the additional capacity is expected to be operational in early to mid-2019.

Headquartered in Houston, Plains All American Pipeline is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids (NGL), natural gas and refined products. The company owns an extensive network of pipeline transportation, terminals, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, Plains handles more than 4.7 million bpd of crude oil and NGL in its transportation segment.

 

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