Full commitments have been made on another pipeline carrying crude out of the Permian Basin to the Corpus Christi, Texas ports.
The Cactus II pipeline, a subsidiary of Plains All American Pipeline L.P. will have an initial capacity of 585,000 barrels a day. The company said it’s obtained long-term third-party shipper contracts.
The line will have origination points at Orla, Wink, Midland, Crane and McCamey, Texas. The system also can be expanded to nearly 70,000 barrels a day using existing pipelines and two new 26-inch lines. The new lines will be constructed at a cost of $1.1 billion.
The first new line will extend from Wink to McCamey and the second will extend from McCamey to the Corpus Christi and Ingleside area with the flexibility to access multiple docks.