Infrastructure / Permian Basin / Shale Daily / NGI All News Access

Two More West Texas Crude Projects Launch Open Seasons

Plains All American Pipeline LP (PAA) and Anadarko Petroleum Corp. each said Wednesday they will hold open seasons for projects to move West Texas crude oil, the third and fourth such announcements in less than a week.

PAA said it has received sufficient customer interest to hold a binding open season for committed crude oil transportation from the Permian Basin to the Corpus Christi/Ingleside area. The project has the potential to add up to 575,000 b/d of Permian pipeline takeaway capacity, according to PAA.

Origin points would be Orla, Wink South, Midland, Crane and McCamey, TX. The pipeline would include a combination of existing pipelines and two new pipelines, one extending from Wink South to McCamey, and another extending from McCamey to the Corpus Christi/Ingleside area.

Assuming receipt of necessary permits and regulatory approvals, the pipeline could be operational in 3Q2019, PAA said. The open season is scheduled to end Jan. 12. For information about the project, contact Kevin Snodgrass at (713) 646-4616.

PAA's announcement came just days after Catalyst Midstream Partners LLC subsidiary Stateline Crude LLC launched an open season to garner support for a project that would run through Eddy County, NM, and the Texas counties of Reeves and Loving. As designed, the new system would include about 50 miles of gathering and transportation pipelines with 125,000 b/d of capacity.

And on Monday, Phillips 66 and Enbridge Inc. launched an open season for the Gray Oak Pipeline, which would transport West Texas crude to the Texas Gulf Coast. Origination stations in West Texas are being considered for Reeves, Loving, Winkler and Crane counties. Gray Oak is expected to have initial throughput capacity of 385,000 b/d, which could be expanded depending on shipper interest.

In addition to those pipelines, Anadarko said Wednesday that subsidiary DBM Oil Services LLC is holding an open season for a midstream system in the area.

The binding open season will identify interest in a new high-vapor-pressure oil-gathering and treating system serving portions of Reeves, Loving, Ward, and Winkler counties. Anadarko expects the DBM system to have a gathering capacity of about 400,000 b/d and a treating capacity of 120,000 b/d by the end of 2018, increasing to 180,000 b/d in 2019, with future expansions as needed. The initial phase of the system could be operational in 2Q2018, Anadarko said.

The DBM open season is scheduled to end Dec. 28. Contact Jake Hendricks at (432) 247-7157 for information. 

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