Will Add Up to 585,000 Barrels Per Day of Permian Basin Pipeline Takeaway Capacity
HOUSTON–(BUSINESS WIRE)–A subsidiary of Plains All American Pipeline, L.P. (NYSE: PAA) today announced that it has received sufficient binding commitments on its initial open season (which closed today) and that it is proceeding with construction of a new pipeline system from the Permian Basin to the Corpus Christi/Ingleside area (the “Cactus II Pipeline”). Permitting, right-of-way and procurement activities are underway, and subject to receipt of necessary permits and regulatory approvals, the Cactus II Pipeline is targeted to be operational in the third quarter of 2019.
The Cactus II Pipeline includes a combination of existing pipelines and two new pipelines. The first new pipeline will extend from Wink South to McCamey, TX, and the second pipeline will extend from McCamey to the Corpus Christi/Ingleside area.
PAA has also received sufficient customer interest to conduct a second binding open season related to Cactus II Pipeline. Origin points will be Orla, Wink South, Midland, Crane and McCamey, TX. This open season provides an opportunity for additional shippers to enter into transportation services agreements that provide for long-term crude oil transportation on Cactus II Pipeline. Based on market demand, this second open season will include additional committed tariff rate structures, but is otherwise consistent with the terms of the first open season.
Additional information is contained in a Notice of Open Season that is posted on our website at https://www.plainsallamerican.com/customer-center/pipeline-tariffs/open-seasons.
Interested parties should contact Kevin Snodgrass at 713-646-4616. As described in the Notice of Open Season, interested entities must sign a confidentiality agreement before receiving the open season documents. The second open season begins on January 22, 2018 at 5 p.m. CT and will end at 5 p.m. CT on February 21, 2018.