Pipeline to link Permian basin, Eagle Ford shale
HOUSTON -- Plains All American Pipeline plans to build a 310-mi, 20-in. pipeline to move crude oil across West Texas, capitalizing on the renewed burst of exploration and production in the Permian basin.
Plains spokesman Brad Leone said Monday that the company isn't yet announcing a start date for construction of the Cactus Pipeline but expects oil to begin flowing in the first quarter of 2015.
It will move sweet and sour crude from McCamey, in Upton County about 50 miles south of Odessa, to Gardendale in South Texas' La Salle County.
Plains said its total investment in the project will be as much as $375 million.
The pipeline's initial capacity will be 200,000 bopd, but the company's announcement said that could increase if the demand warrants.
"That's a sizable quantity," said John M. White, an analyst with Triple Double Advisors in Houston. "It's another piece of the West Texas, South Texas, Gulf Coast crude oil infrastructure build-out."