Commercial Service on Cactus II Pipeline Will Start Next Week

The new Cactus II crude oil pipeline, owned by Plains All-American, is mechanically complete and will begin commercial service next week, CEO Willie Chiang said. The pipeline will have the capacity to transport 670,000 barrels per day of crude oil from the Permian Basin to the Gulf Coast.

"As of today, the line is approximately 50% filled with crude, and we anticipate entering initial commercial service sometime next week," Chiang said during a conference call with investors to discuss the company's second-quarter financial results. "We expect to have direct Cactus II connectivity to Corpus (Christi) in service by the end of the first quarter 2020."

In-order to ease the bottlenecks that developed as a result of the fast-rising Permian Basin production, Cactus II is one of three new crude oil pipelines scheduled to enter service before the end of the year.

The other two pipelines scheduled for completion this year are the EPIC Crude Oil Pipeline from Orla, Texas, to Corpus Christi and Phillips 66 Gray Oak Pipeline.

According to Chiang, the company has also added new investors to its proposed Wink-to-Webster pipeline and expects to start operations on the project in the first quarter of 2021.

Source:
pgjonline

Kinder Morgan Moves Forward with South Texas Pipeline Connection

Kinder Morgan Inc., announced on Wednesday that the company will go ahead with the South Texas pipeline connection that would transport crude from Phillips 66’s Gray Oak pipeline in the Permian Basin to delivery points at the Houston Ship Channel.

“We wanted to find a way to get Permian barrels to KMCC (Kinder Morgan Crude and Condensate pipeline),” which delivers crude from the Eagle Ford Shale in South Texas to Houston Ship Channel destinations, Chief Executive Officer Steven Kean said.

Kinder Morgan and Phillips 66 began soliciting shipper commitments for the connection in February. The company plans to spend $10 million on the project this year and expects the connection could carry 100,000 barrels per day.

The service is expected to begin by the end of 2019 and has contracts to start transporting 75,000 barrels per day for up to three years. The company is also considering converting an underutilized natural gas pipeline to carry crude from the Bakken shale in North Dakota and the Denver-Julesburg basin in Colorado.

Source:
reuters

Open Season for Kinder Morgan and Phillips' 850-Mile Gray Oak Pipeline Announced

Phillips 66 and Kinder Morgan Inc., announced an open season on Monday for shipper commitments for its Gray Oak Pipeline.

The Gray Oak Pipeline stretches from the Permian Basin to delivery points at or near the Houston Ship Channel and capable for crude deliveries of 900,000 barrel per day.

According to an analyst, The Gray Oak Pipeline could help alleviate a crude oil transportation bottleneck in the Permian Basin of West Texas and New Mexico.

Through a connection in South Texas, The Gray Oak Pipeline would deliver crude to the Houston area.

Source:
Reuters

Phillips 66 Partners to Move Forward with Gray Oak Pipeline in West Texas

Phillips 66 Partners said it has received enough commitments from oil producers in West Texas' Permian Basin to move forward with its Gray Oak crude oil pipeline.

The Gray Oak Pipeline will carry crude from West Texas to markets in Corpus Christi, Sweeny, and Freeport in South Texas, according to the Houston-based company.

The pipeline, which could have a capacity of 700,000 barrels per day starting by the end of 2019, will have the potential to expand capacity to about 1 million barrels per day if it becomes fully subscribed.

Gray Oak will connect to a new marine terminal being built by Buckeye Partners, Phillips 66, and Andeavor.

Phillips 66 owns 75 of the project while Andeavor owns 25 percent.

Source:
Fuel Fix