Plains All American has proposed pipeline expansions in Canada, Montana and Wyoming in order to connect to the $2.5 billion Red Oak pipeline system that Houston’s Phillips 66 and Plains are building from Oklahoma to Houston, Beaumont and Corpus Christi. While the Keystone XL pipeline project is still fighting legal battles, these expansions, set to complete in 2021, would allow more Canadian crude oil to reach Houston and the Gulf Coast.
Tyler Rimbey, executive Vice President for Canadian Plains stated, “We remain focused on leveraging our existing systems in creative ways to meet the growing needs of our customers.”
The reasonably priced expansions include Plains’ Western Corridor pipeline in Montana and Wyoming to grow as well as their Rangeland Pipeline, running from Edmonton to the U.S./Canadian border, to increase by 2X.
The Red Oak pipelines will be located from an oil storage hub in Cushing, Oklahoma to Wichita Falls, Texas and handle a mix of Canadian and Texas crude oil. From Wichita Falls, the pipelines should connect to systems from the Permian Basin, then lead towards Sealy and onwards to different refining and port hubs in Corpus Christi, Ingleside, Houston and Beaumont.