Plains All American Pipeline, L.P. (NYSE: PAA) today announced that it has completed or is nearing completion on the construction of new crude oil pipeline projects that total over 145 miles and are expected to provide 200,000 barrels per day of additional takeaway capacity from the Bone Spring, Spraberry and Wolfberry producing areas in nine West Texas counties. Total estimated cost of these pipelines is $135 million.
“These projects provide additional pipeline gathering capacity in areas with significant production growth and will have the ability to supply crude oil to Basin Pipeline, Longhorn Pipeline and/or West Texas Gulf Pipeline,” said Harry N. Pefanis, President and COO of Plains All American.
The new 15-mile Barstow pipeline project, which was recently brought into service, extends south from PAA’s Bone Spring pipeline and will initially provide 50,000 barrels per day of take-away capacity to service growing production in Ward, Reeves and Pecos counties. The Barstow pipeline will receive crude oil from two truck injection stations and has a long-term delivery commitment from Hoover Energy’s Pecos Crossing pipeline.
The new 50-mile North Spraberry pipeline will extend northward from Midland, Texas to Martin County, Texas and west to Andrews County, Texas to transport Wolfberry and Spraberry production. The North Spraberry pipeline will have an initial capacity of 40,000 barrels per day and is expected to be brought into service in stages through the end of 2012.The new South Spraberry trunk line consists of a 50-mile pipeline extending from Midland, Texas to northwest Reagan County and connecting to PAA’s existing Spraberry Pipeline that runs to southeast Reagan county. The South Spraberry trunk line will provide 60,000 barrels per day of capacity for Glasscock, Reagan, Irion and Crockett Counties. Included with the South Spraberry trunk line project are two gathering laterals: one line extending to Best and another line extending to Barnhart. In addition, a new 15-mile pipeline providing 50,000 barrels per day of capacity will be constructed from Garden City, Texas to the South Spraberry trunk line. The South Spraberry segments are expected to be in service by the end of 2012.
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