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Houston midstream co. invests in Permian pipeline expansion

Author: 
Houston Business Journal

Houston-based Plains All American Pipeline LP (NYSE: PAA) is investing in its midstream footprint in the Permian Basin with an expansion of its 310-mile Cactus Pipeline.

The expansion will bring the McCamey-to-Gardendale, Texas, pipeline's capacity to 390,000 barrels per day, according to a Plains press release. Plains expects parts of the expansion to enter service in the third quarter of 2017. The initial design capacity for the pipeline was 200,000 barrels per day.

Cactus is one of the only ways to move Permian crude out of the basin to refineries and the port in Corpus Christi. The pipeline's expansion could be a boon for companies with assets in Corpus Christi, like Houston's Gravity Midstream LLC, that have been hurt by the sharp decline in oil production traveling to the port from the Eagle Ford.

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