HOUSTON–(BUSINESS WIRE)–A subsidiary of Plains All American Pipeline, L.P. (NYSE: PAA) today announced a successful conclusion to the open season for additional capacity from the Delaware Basin to Cushing, OK. The Partnership announced 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 of movements from the Delaware Basin and Midland to Cushing, OK.
The committed volume will move on a combination of new and existing pipelines. The Partnership plans to extend its Sunrise Pipeline system, which currently originates at Midland and connects with Colorado City, by building approximately 180-miles of 24-inch pipeline from Colorado City, TX to Wichita Falls, TX. 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 barrels per day.
“We are pleased to announce the Sunrise expansion project which enhances the utilization of capacity in our existing system,” commented Willie Chiang, US Chief Operating Officer for PAA. “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.