Plains All American Pipeline LP (PAA) has mostly completed an expansion of a portion of its Basin pipeline system, which moves oil from the Permian Basin region in West Texas and southern New Mexico to Cushing, Oklahoma.
The expansion has “achieved approximately 90 percent of the volume outlook expected,” President Harry Pefanis said in a conference call with analysts today. Current capacity is “just under” 450,000 barrels a day and can be increased by 10,000 during coming maintenance periods, he said.
Plains announced Jan. 25, 2011, it would expand a portion of the system that moves oil from Colorado City, Texas, to Cushing to 450,000 barrels from 400,000. The project was expected to be completed in the first quarter of this year, the company said at the time.
“The timing of this expansion has been challenged by the sheer volume of crude nominations we have had on the system,” Pefanis said today.
Oil shipments on Permian Basin area pipeline systems increased 16 percent to an average 454,000 barrels a day in the first quarter from 392,000 a year earlier, the company said in a statement today.