Plains Says Basin Pipeline Expansion ‘Largely’ Completed
Stock Chart for Plains All American Pipeline LP (PAA)
Plains All American Pipeline LP (PAA) has mostly completed an expansion of a portion of its Basin pipeline system that moves oil from the Permian Basin region in west Texas and Southern New Mexico to Cushing, Oklahoma.
“We have largely completed the expansion of our Basin pipeline system having achieved approximately 90 percent of the volume expected,” President Harry Pefanis said in a conference call with analysts today. “The timing of this expansion has been challenged by the sheer volume of crude nominations we have had on the system.”
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.
“We expect to complete the final minor modifications as we are able to,” Pefanis said.
The company announced Jan. 25, 2011, that it would expand the portion of the system that moves oil from Colorado City, Texas, to Cushing to 450,000 barrels from 400,000.