Plains All American Pipeline (PAA) announced plans to acquire Volocity Midstream’s – Velocity South Texas Gathering assets. The pipeline and midstream deal includes over 120 miles of crude oil and condensate pipe with capacity of 150,000 barrels per day through parts of Dimmit, La Salle, and Webb counties. The pipeline system is underpinned by volume commitments from major producers in the area. If warranted, the system can be expanded to handle 185,000 barrels per day.
The system also has storage capacity at Catarina and Gardendale. The Gardendale facility ties directly into Plains All American’s existing Eagle Ford pipeline. [Read more…]