Pipeline expands capacity to get crude from Permian Basin to Corpus Christi
Fuel Fix:
Houston's Plains All American Pipeline said it has secured enough customers to start construction on its Cactus II Pipeline, connecting West Texas' booming Permian Basin with the crude oil export market in Corpus Christi.Midstream providers are competing to deal with the continued expansion of production from Permian wells in order to get the crude to market. The growth in production is beginning to overwhelm the current pipeline capacity and could lead to more rail movement of crude.
Cactus II will be a combination of new and existing pipelines, and is expected to be completed by the fall of 2019, the company said in a statement. It would add two pipelines to Plains' existing Cactus network, expanding the system's crude capacity from 390,000 barrels a day to up to 575,000 barrels.
Plains is also soliciting customers for a second open season for Cactus II, the company said.
The original Cactus Pipeline is the only major oil pipeline connecting the Permian to Corpus Christi. But there are several other Permian-to-Corpus projects in the works, including projects from Houston's Phillips 66 and Canada-based Enbridge.
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