Plains All American Pipeline LP (PAA) announced that it would build two new Delaware Basin pipelines and related gathering systems. PAA also announced plans to expand its existing Blacktip station and to build a 20-inch loop line from Blacktip station to Wink, Texas. The expansions will support PAA’s previously announced 24-inch Basin Pipeline loop from Wink to Midland and new 12” pipeline from Monahans to Crane, Texas. The new Delaware Basin pipelines, known as Avalon Extension and State Line, are backed by producer commitments.
The 12-inch-diameter Avalon Extension Pipeline will extend the Avalon Pipeline by 32 miles. Currently, the pipeline runs from the PAA Avalon station in northwest Loving County to its Blacktip station in southeast Loving County, Texas. The extension will increase the pipeline’s reach into Culberson County, Texas. The Avalon Pipeline is capable of transporting up to 100,000 barrels per day (bbl/d) of crude oil from northern Loving and Culberson counties. The line along with two new truck unloading facilities at Orla, Texas, and at Highway 285 are expected to be enter service in phases beginning in July 2015, with total system completion expected in September 2015.
The 16-inch-diameter State Line Pipeline will extend 60 miles to connect Culberson County to Wink running along the Texas-New Mexico state line. The pipeline is designed to connect Delaware Basin production in southern Eddy and Lea counties, New Mexico, and northern Loving, Reeves and Culberson counties, Texas, to the existing network of PAA Permian Basin assets. The pipeline will have a transportation capacity of up to 150,000 bbl/d of batched crude oil and condensate. State Line is expected to enter service in phases beginning in early 2016 and concluding in mid-2016, with completion of the associated gathering system planned for early 2016.
The Blacktip station expansion and pipeline loop will include construction of 200,000 bbl of new operational tankage with associated pumping to provide another 200,000 bbl/d of pipeline capacity from the Blacktip station to Wink. Completion of the Blacktip station expansion and loop pipeline is expected in August 2015.
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