Energy Transfer Partners LP (NYSE: ETP) on Aug. 9 said it expects to expand its Permian Express oil pipeline system by up to 100,000 barrels per day (bbl/d) and may boost capacity on its Dakota Access crude pipeline.
During the second quarter, ETP completed an open season for about 50,000 additional bbl/d on Permian Express 3, which represents the final phase of the 140,000 bbl/d project.
The final 50,000 bbl/d is expected to be online later this year, an executive said on an earnings call for the quarter.
Flows on the Dakota Access pipeline, that runs from North Dakota to Illinois, have averaged just over 500,000 bbl/d recently and the company said it could expand by another 100,000 bbl/d.
ETP said it is also making progress on a new 30-inch crude oil pipeline joint venture project from the Permian Basin to the Gulf Coast that would add at least 1 million barrels per day of capacity.
That line is likely to come online by 2020, ETP said in May.
The company said it would also look at expanding capacity on other existing lines.
“Everywhere we possibly can use DRA [drag reducing agents] across the country, we are,” Marshall McCrea, a senior ETP executive, said.
Production in the Permian Basin, the biggest oil patch in the U.S., has surged beyond the takeaway capacity of pipelines, depressing oil prices in the region.
Recommended Reading
Powder in the Hole: Devon May Fire up its PRB in Coming Years
2024-08-23 - Devon Energy is perfecting its spacing and completion recipe in Wyoming’s Powder River Basin play to possibly unleash full-field development later this decade.
Avant Natural Resources Steps Out with North Delaware Avalon Tests
2024-08-21 - With the core of the Delaware Basin in full manufacturing mode, Avant Natural Resources is pushing an operated portfolio into the northern reaches of the New Mexico Delaware.
Eni Reports Discovery Offshore Mexico in Block 9
2024-07-10 - Italian energy giant Eni SpA announced a discovery at the Yopaat-1 EXP exploration well in the offshore Mexico Block 9 of the Cuenca Salina in the Sureste Basin, which potential up to 400 MMboe in place.
Devon Energy Expands Williston Footprint With $5B Grayson Mill Deal
2024-07-08 - Oklahoma City-based Devon Energy is growing its Williston Basin footprint with a $5 billion cash-and-stock acquisition from Grayson Mill Energy, an EnCap portfolio company.
Devon Capitalizing on Bakken, Eagle Ford Refracs
2024-08-07 - Devon Energy’s Delaware Basin production dominated the quarter for the multi-basin E&P, but the company is tapping into recompletion opportunities to supplement production, executives said.