Owners of Capline Pipeline Explore Interest in Pipeline Reversal With Open Season

Pipeline operators Plains All American Pipeline, Marathon Petroleum, and BP Oil Pipeline Co are launching a non-binding open season to receive shipper interest in its proposed reversal of the Capline pipeline that moves crude from St. James, Louisiana to Patoka, Illinois.

If the open season is successful and the operators decide to continue with its proposal, the reverse flow could be operational by the second half of 2022. The reversed Capline pipeline would initially have a capacity of 300,000 barrels per day and would be able to receive crude from connecting carriers at Patoka.

Marathon Pipe Line operates the pipeline and owns the asset along with Plains All American Pipeline and BP Oil Pipeline Co.

The open season will be held through November 17, 2017.

Oil & Gas Journal

Plains All American Pipeline Considering Shutting Down Capline Pipeline due to Rising Competition

Plains All American may shut down its Capline pipeline, the largest crude pipeline in the nation, as competing pipelines begin to come online, according to a report made by the company last week.

The 1.2 million barrel-per-day crude pipeline was designed to move imported and Gulf of Mexico crude from Louisiana to refiners in the Midwest but has seen a sharp decline in its volumes over the last few years due the U.S. shale boom that has pushed inland crude to the East Coast and Gulf Coast.

In an investor presentation last week, Plains discussed idling its Capline pipeline as "redundant pipeline capacity" comes online from the storage hub in Cushing, Oklahoma.

According to a report, the Capline pipeline moved only 360,000 barrels per day last year, less than third of its capacity.

Plains All American Pipeline is the majority owner of the pipeline, but Marathon Petroleum Corp and BP PLC have minority stakes as well.