Plains All American Planning Cactus Pipeline – McCamey to Gardendale

Permian Crude Will Access Rail, Barge, and Pipeline Outlets From Gardendale
Plains All American Eagle Ford Assets

Plains All American Eagle Ford Assets | Click to Enlarge

Plains All American Pipeline announced a new $350 million pipeline that will move 200,000 b/d of crude oil from the Permian Basin into the Eagle Ford region. The Cactus Pipeline will be a 310-mile, 20-inch crude oil pipeline from McCamey, TX, to the Gardendale Area in La Salle County, TX.The pipeline is supported by a long-term capacity commitment and is expected to be in service in the first quarter of 2015. Plains estimates total costs will come in around $350 to $375 million.

From La Salle County, crude will have access to the Gardendale rail or Plains and Enterprise’s Eagle Ford Joint Venture system. The Eagle Ford JV Pipeline provides direct access to Corpus Christi and Three Rivers, as well as access to Houston through Entrprise’s South Texas Crude Oil Pipeline. In Corpus Christi, oil has access to marine terminals.

In an oil price environment with large basis differentials, options can create a lot of value. Permian crude will now have access to barges, railroads, and pipelines in South Texas.

Read the full press release at paalp.com

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R.T. Dukes

R.T. Dukes

Managing Editor at EagleFordShale.com
R.T. is the managing editor of EagleFordShale.com. In prior roles, he advised major oil companies on strategy, the macro business environment, and opportunity screening. 2503 Robinhood, Houston, TX, 77005, U.S.A. | Telephone: 832.429.4790

Comments

  1. Sam Thacker says:

    Looking forward to more positive news from the oil fields of Texas.

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