Plains All American Makes Joint Agreement to Expand Operations in New Mexico

 

With large pipeline operations and storage facilities in Oklahoma, Plains All American Pipeline L.P. is expanding its operations with a strategic relationship in New Mexico. It will also result in a pipeline construction project in Texas.

Plains formed the relationship with San Mateo Midstream, LLC to gather and transport crude oil for upstream producers in Eddy County, New Mexico. Eddy County is located in southeast New Mexico and surrounds Carlsbad and is located in the Permian Basin.

Subsidiaries of San Mateo and Plains have agreed to work together through a Joint Tariff arrangement to offer producers located within a joint development area of nearly 400,000 acres in the county. The two will offer crude oil transportation services from the wellhead to Midland, Texas with access to other end markets.

As a result of the agreement, Plains will  construct a mainline extension from its current long-haul oil pipeline system in Culberson County, Texas to a central delivery point on San Mateo’s crude oil pipeline system. The San Mateo system is under construction in Eddy County, New Mexico and construction is expected to be complete either in the second quarter of early third quarter of 2018. Once completed, San Mateo will accept crude oil onto its system from trucks near the city of Loving, New Mexico.