Plains All American Pipeline Announces New Permian Basin Expansion Activities
HOUSTON--(BUSINESS WIRE)--Plains All American Pipeline, L.P. (NYSE:PAA) today announced four projects that are part of its plan to significantly increase and expand its Permian Basin pipeline infrastructure over the next few years to keep pace with rising production volumes. These four projects, as well as several other projects currently under review, will result in aggregate investments of approximately $400 million to $500 million. The four projects are expected to be completed in stages throughout 2014 and early 2015 and include the construction of three new large diameter (“trunk line”) pipelines that will increase the Partnership’s takeaway capacity in support of crude oil production growth in the Delaware and South Midland Basins and 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, New Mexico to Wink, Texas (in Winkler County), increasing the pipeline’s capacity 100,000 barrels per day to 240,000 barrels per day, and constructing a new 40-mile, 12-inch pipeline with 100,000 barrels per day of pipeline capacity from Monahans to Crane, Texas to supply volumes to the Longhorn pipeline as well as the Partnership’s Cactus pipeline at McCamey.
The second project includes constructing a new 62-mile, 16 and 20-inch pipeline with 200,000 barrels per day of takeaway capacity from the South Midland Basin in Central Reagan and Central Upton counties to the origin of the Cactus pipeline at McCamey, Texas.
The third project involves constructing a new 80-mile, 20-inch pipeline between Midland and Colorado City, Texas that will provide an additional 250,000 barrels per day 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 the capacity of its Cactus pipeline project from 200,000 barrels per day to 250,000 barrels per day through the addition of pumping capacity.
Customer inquiries regarding these projects should be directed to Joe Richards, Dir., Pipeline Commercial Operations at Plains All American Pipeline, 713-646-4629.
Plains All American Pipeline, L.P. is a publicly traded master limited partnership engaged in the transportation, storage, terminalling and marketing of crude oil and refined products, as well as in the processing, transportation, fractionation, storage and marketing of natural gas liquids. Through its general partner interest and majority equity ownership position in PAA Natural Gas Storage, L.P. (NYSE:PNG), PAA owns and operates natural gas storage facilities. PAA is headquartered in Houston, Texas.
Forward Looking Statements
Certain matters discussed in this release are forward-looking statements that involve risks and uncertainties that could cause actual results or outcomes to differ materially from results or outcomes anticipated in the forward-looking statements. These risks and uncertainties include, among other things, shortages, cost increases or delays in receipt of supplies, materials or labor; inability to obtain, delays in the receipt of, or other issues associated with necessary licenses, permits, approvals, consents, rights of way or other governmental or third party requirements; the impact of current and future laws, rulings, orders, governmental regulations, accounting standards and statements and related interpretations; weather interference with business operations or project construction; environmental liabilities, issues or events that result in construction delays or otherwise impact targeted in-service dates; interruptions in service on third-party pipelines or facilities; general economic, market or business conditions and the amplification of other risks caused by volatile financial markets, capital constraints and pervasive liquidity concerns; and other factors and uncertainties inherent in the transportation, storage, terminalling and marketing of crude oil and refined products as discussed in the Partnership’s filings with the Securities and Exchange Commission.