Plains to build 300,000 bpd pipeline from Eagle Ford shale to Corpus Christi
Plains All American Pipeline plans to build a 130-mile, 300,000 bpd crude oil and condensate pipeline, a marine terminal facility and 1.5mn bbl of storage capacity to service growing Eagle Ford shale production in south Texas.
The project is expected to cost $330mn and be in service in the 2012 fourth quarter. To underpin the project, Plains said it secured a long-term throughput agreement with Chesapeake Energy.
The project is designed to provide approximately 300,000 bpd of take-away capacity from the western region of the Eagle Ford play to Corpus Christi, Texas and other Gulf Coast markets.
Plains said it will give Chesapeake the opportunity to acquire up to a 25% joint ownership interest in the project.
Additionally, Plains and Flint Hills Resources have executed a memorandum of understanding regarding Flint Hills’ potential joint ownership. Flint Hills Resources operates a 300,000 bpd refinery in Corpus Christi.
Plains owns and operates a network of approximately 16,000 miles of liquids pipelines, approximately 90mn barrels of liquids storage capacity and handles over 3mn barrels of physical product on a daily basis.
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