BridgeTex Pipeline Co. LLC set new committed shipping rates to move crude oil from Midland and Colorado City, Texas, to East Houston, Texas, effective Feb. 1, according to a filing on Jan. 30.
The BridgeTex pipeline was recently expanded from 300,000 barrels per day (bbl/d) to a capacity of 400,000 bbl/d to deliver Permian crude oil from Midland and Colorado City to the Houston Gulf Coast area. BridgeTex is expanding the pipeline system again, for a new capacity of about 440,000 bbl/d, expected to be operational in early 2019.
BridgeTex completed a supplemental open season and secured additional volume commitments for the new expansion capacity from the Permian Basin to East Houston, it said in a filing with the U.S. Federal Energy Regulatory Commission (FERC).
The pipeline set a volume commitment of 10,000 bbl/d to 40,000 bbl/d for a term of 3 years at $2.10/bbl and for a term of five years at $2/bbl from Midland to East Houston.
BridgeTex set a volume commitment of 10,000 bbl/d to 40,000 bbl/d for a term of three years at $1.85/bbl and for a term of five years at $1.75/bbl from Colorado City to East Houston.
The new rates have been agreed to by at least one non-affiliated company that intends to use the new services offered in the tariff, BridgeTex said in the filing.
BridgeTex had initially sought FERC approval for some rates after completing an open season in July, but has faced protests from Occidental Energy Marketing Inc.
BridgeTex is co-owned by Midstream Partners LP (NYSE: MMP) and Plains All American Pipeline LP (NYSE: PAA).
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