PAAP to Construct Texan Crude Oil Pipeline

Plains All American Pipeline (PAAP) is to construct a new 130-mile crude oil and condensate pipeline, a marine terminal facility and 1.5 million barrels of storage capacity to service growing Eagle Ford production in south Texas, US.

The $330m project is designed to provide approximately 300,000 barrels per day of takeaway capacity from the western region of the Eagle Ford play to Corpus Christi and other Gulf Coast markets.

As part of the project, PAAP secured a long-term throughput agreement with Cheasapake Energy’s subsidiary Chesapeake Energy Marketing.

Under the terms of agreement, PAAP will provide Chesapeake Midstream Development opportunity to acquire a 25% joint ownership interest in the project.

PAAP has also executed a memorandum of understanding with Flint Hills resources regarding Flint Hills’ potential joint ownership in the project.