Plains All American proceeding with new pipeline from Permian to Corpus Christi

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.

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.

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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.

The Cactus II Pipeline includes a combination of existing pipelines and two new pipelines. The first new pipeline will extend from Wink South to McCamey, TX, and the second pipeline will extend from McCamey to the Corpus Christi/Ingleside area.
PAA has also received sufficient customer interest to conduct a second binding open season related to Cactus II Pipeline. Origin points will be Orla, Wink South, Midland, Crane and McCamey, TX. This open season provides an opportunity for additional shippers to enter into transportation services agreements that provide for long-term crude oil transportation on Cactus II Pipeline. Based on market demand, this second open season will include additional committed tariff rate structures, but is otherwise consistent with the terms of the first open season.
Additional information is contained in a Notice of Open Season that is posted on our website at https://www.plainsallamerican.com/customer-center/pipeline-tariffs/open-seasons.