A subsidiary of Plains All American Pipeline, L.P. (ticker: PAA) announced that it is conducting an open season for committed crude oil pipeline capacity from the Delaware Basin to Cushing, OK (the “Pipeline”). The Pipeline will originate at Conan Station in Loving County, Texas. Depending on the results of the open season, committed volumes will move on a combination of new and existing pipelines. The open season provides an opportunity for potential shippers to offer long-term volume commitments in exchange for firm transportation on the Pipeline.
The Pipeline will deliver to Plains’ and third party terminals in Cushing, OK. Subject to sufficient commitments from shippers and receipt of any necessary permits and regulatory approvals, the Pipeline could be operational in mid-2019.
By submitting a binding proposal, bidders are offering to enter into a long-term throughput and deficiency agreement for pipeline capacity. Interested parties should contact Kevin Snodgrass at KTSnodgrass@paalp.com. Potential shippers must sign confidentiality agreements before receiving the open season documents. The open season begins on June 16, 2017 and will end at 5 p.m. CT on July 17, 2017.
