Plains All American Nears Completion of Permian Basin Infrastructure Construction
Crude Oil Pipeline Projects to Service Bone Spring, Spraberry, Wolfberry Production
HOUSTON--(BUSINESS WIRE)-- Plains All American Pipeline, L.P. (PAA) (NYSE: PAA) today announced that it has completed or is nearing completion on the construction of new crude oil pipeline projects that total over 145 miles and are expected to provide 200,000 barrels per day of additional takeaway capacity from the Bone Spring, Spraberry and Wolfberry producing areas in nine West Texas counties. Total estimated cost of these pipelines is $135 million.
These projects provide additional pipeline gathering capacity in areas with significant production growth and will have the ability to supply crude oil to Basin Pipeline, Longhorn Pipeline and/or West Texas Gulf Pipeline, said Harry N. Pefanis, President and COO of Plains All American.
The new 15-mile Barstow pipeline project, which was recently brought into service, extends south from PAAs Bone Spring pipeline and will initially provide 50,000 barrels per day of take-away capacity to service growing production in Ward, Reeves and Pecos counties. The Barstow pipeline will receive crude oil from two truck injection stations and has a long-term delivery commitment from Hoover Energys Pecos Crossing pipeline.
The new 50-mile North Spraberry pipeline will extend northward from Midland, Texas to Martin County, Texas and west to Andrews County, Texas to transport Wolfberry and Spraberry production. The North Spraberry pipeline will have an initial capacity of 40,000 barrels per day and is expected to be brought into service in stages through the end of 2012.
The new South Spraberry trunk line consists of a 50-mile pipeline extending from Midland, Texas to northwest Reagan County and connecting to PAAs existing Spraberry Pipeline that runs to southeast Reagan county. The South Spraberry trunk line will provide 60,000 barrels per day of capacity for Glasscock, Reagan, Irion and Crockett Counties. Included with the South Spraberry trunk line project are two gathering laterals: one line extending to Best and another line extending to Barnhart. In addition, a new 15-mile pipeline providing 50,000 barrels per day of capacity will be constructed from Garden City, Texas to the South Spraberry trunk line. The South Spraberry segments are expected to be in service by the end of 2012.
For additional commercial information regarding these expansions, please contact:
|Joe Richards||Martin McHale|
|Dir. -- Pipeline Commercial Operations||Mgr. Pipeline Commercial Operations|
PAA owns and operates approximately 3,500 miles of pipeline, 20 million barrels of storage capacity and handles over 500,000 barrels of crude oil per day in the Permian Basin area. Throughout North America, PAA owns a network of approximately 18,000 miles of liquids pipelines, 120 million barrels of liquids storage capacity and handles more than 3 million barrels of physical product on a daily basis.
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., 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, refined products and natural gas liquids as discussed in the Partnerships filings with the Securities and Exchange Commission.
Plains All American Pipeline, L.P.
Roy I. Lamoreaux, 713-646-4222 - 800-564-3036
Director, Investor Relations
Source: Plains All American Pipeline, L.P.Copyright Business Wire 2012