Plains All American Pipeline L.P.
) announced that it will build a crude oil pipeline, stretching
from McCamey to Gardendale, Texas. The new 20-inch pipeline will
be known as the Cactus Pipeline and will span 310 miles (498.9
kilometers). The partnership intends to spend $350 million to
$375 million for this project.
Cactus Pipeline will able to carry roughly 200,000 barrels per
day of crude oil initially and subsequently scale up the capacity
when demand increases. This pipeline is expected to be online in
the first quarter of 2015.
Cactus Pipeline is anticipated to carry sweet and sour crude
oil from the Permian Basin to another crude oil pipeline in South
Texas, known as the Eagle Ford Joint Venture (Eagle Ford JV)
Pipeline jointly established by Plains All American Pipeline and
Enterprise Products Partners L.P.
). The pipeline will also have connections with the rail loading
capacity at the partnership's Gardendale station and the Eagle
Ford JV barge dock capacity in the Corpus Christi area.
Pipeline operators normally invest substantial amounts to set
up new pipelines after getting long-term service assurance from
petroleum companies. Plains All American Pipeline has already
inked a long-term agreement with an organization for utilizing
the majority of the pipeline's capability and is in the middle of
dialogues with several shippers for the rest of the
It is evident from Plains All American Pipeline's recent
strategies that the partnership continues to strengthen its
footprint in Texas, particularly in the Eagle Ford area. In 2011,
the partnership acquired the Gardendale Gathering System from
Velocity with a transaction value of $349 million and formed
Eagle Ford Pipeline LLC with Enterprise Products Partners in
2012. We believe that the installation of this new pipeline will
enable the partnership to strengthen its presence in the Eagle
Ford region and serve customers in a better way.
Houston, Texas-based Plains All American Pipeline, L.P. is a
publicly traded master limited partnership engaged in the
transportation, storage, terminalling and marketing of crude oil,
refined products and liquefied petroleum gas and other natural
gas related petroleum products.
Plains All American Pipeline currently has a Zacks Rank #3
(Hold). Other stocks from the industry that are presently
performing better are Zacks Ranked #2 (Buy)
Atlas Pipeline Partners L.P.
Delek Logistics Partners LP
ATLAS PIPLN PTR (APL): Free Stock Analysis
DELEK LOGISTICS (DKL): Free Stock Analysis
ENTERPRISE PROD (EPD): Free Stock Analysis
PLAINS ALL AMER (PAA): Free Stock Analysis
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