Crude oil is already flowing in the new Sunrise Pipeline carrying crude from the Permian Basin to the Cushing storage hub in Oklahoma.
Plains All american LP, which operates the line, set rates this week for the new extension and according to a report, they will be effective Nov. 1.
The Sunrise line won’t go into full service until the first of November but it is expected to be yet another move by the industry to ease the slow movement of oil out of the Permian.
Reports indicated the Sunrise Pipeline created uncommitted spot rates at $1.69 per bbl and committed rates for anchor shippers at $1.70. The company declared the rates in a filing made with the Federal Energy Regulatory Commission.
Sunrise is one of two lines that will go into operation ahead of schedules. Plain’s Cactus II line, with a capacity of 670,000 bbl/d will go into service in the third quarter of next year. It will carry crude from the Permian Basin to Corpus Christi.