|Jul 18, 2017
|Plains All American Pipeline Announces Successful Open Season and Expansion of Delaware Basin to Cushing Pipeline System
|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.
Forward Looking Statements
This press release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. An extensive list of factors that can affect future results are discussed in PAA’s Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. PAA undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
Plains All American Pipeline, L.P. 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. PAA owns an extensive network of pipeline transportation, terminalling, 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, PAA handles over 4.7 million barrels per day of crude oil and NGL in its Transportation segment. PAA is headquartered in Houston, Texas. More information is available at www.plainsallamerican.com.
Plains All American Pipeline, L.P.
Brett Magill, 866-809-1291
Manager, Investor Relations
Brad Leone, 866-809-1290