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Industry Brief

Plains All American Pipeline LP plans to increase takeaway capacity of its Cactus Pipeline in response to rising production forecasts and producer demand. The company said it will add more pumps to the system at booster stations along the pipeline, which runs from McCamey to Gardendale in La Salle County, TX, resulting in an increase in throughput from 250,000 b/d to 330,000 b/d. The Cactus expansion, in conjunction with the previously announced Eagle Ford Joint Venture Pipeline expansion (see Shale DailyNov. 5Sept. 23, 2013), will allow Plains to move increased production from the Permian Basin to Corpus Christi and other delivery points along the system. The Cactus Pipeline is expected to be in service in April; the expansion is to be completed in the fourth quarter of 2015. Separately, Phillips 66 and Energy Transfer Partners LP will hold a binding open season beginning Monday for crude oil pipeline transportation originating at Nederland, TX, for deliveries to various terminals and refineries in the vicinity of Lake Charles and St. James, LA.

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