Plains All American Pipeline LP (NYSE: PAA) and Enterprise Products Partners LP (NYSE: EPD) agreed to expand their Eagle Ford joint venture crude oil pipeline.
The expansion will increase the pipeline’s capacity to 470,000 barrels per day (bbl/d) of light and medium crude oil grades to accommodate additional volumes expected from PAA’s Cactus pipeline that is currently under construction. The Eagle Ford JV pipeline expansion is expected to cost $120 million and is expected to be in service 2Q 2015.
The Eagle Ford JV Pipeline system, most of which is currently in service and expected to be completed by Sept. 30, is a 50/50 joint venture between Plains and Enterprise that serves the Three Rivers and Corpus Christi refineries and other markets via marine transport facilities at Corpus Christi. The pipeline supplies the Houston-area market through a connection to the Enterprise Crude Pipeline terminal at Lyssy in Wilson County, Texas. The pipeline expansion will be completed in stages that include adding pumping capacity and looping certain segments of the existing system. The expansion also includes constructing an additional 2.3 million barrels of operational storage capacity in Gardendale, Tilden and Corpus Christi.
The Cactus Pipeline is being constructed by PAA from McCamey, Texas, in the Permian Basin area to Gardendale in La Salle County, Texas. The pipeline will have an initial capacity of 200,000 bbl/d and is expected to be in service 2Q 2015.
Plains All American Pipeline LP engages in the transportation, storage, terminalling, and marketing of crude oil and refined products in the U.S. and Canada. Enterprise Products Partners LP provides midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products, and petrochemicals in the U.S. and internationally. The companies are based in Houston.
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