Plains All American Pipeline LP’s 585,000 barrel-per-day (bbl/d) Cactus II oil pipeline from the Permian Basin to the Corpus Christi, Texas, area will commence line fill within a week, a source with direct knowledge of the matter said on June 27.
Line fill refers to the process of filling oil in a new pipeline before commercial deliveries can begin.
Plains did not immediately respond to requests for comment.
Once line fill is complete, commodities merchant Trafigura, one of the largest shippers on the line, will be shipping full contractual volumes, the source said.
Trafigura signed a long-term agreement with Plains last year to transport a total of 300,000 bbl/d of crude and condensate on the Cactus II pipeline from the Permian Basin, the biggest oil field in the U.S., to the port of Corpus Christi.
The trading house is one of the biggest exporters of U.S. crude and the deal with Plains will allow it deliver crude to U.S. Gulf Coast refiners, ship the oil to its condensate splitters and export terminal in Corpus Christi, which it co-owns with Buckeye Partners L.P.
Pipeline takeaway constraints had slowed production growth and weighed on oil prices in the Permian basin but midstream companies have announced several new projects, such as Cactus II, to help clear the transportation bottleneck.
A shale boom has helped propel the United States to the position of the biggest oil producer in the world and the Permian basin has accounted for a large part of output growth in recent years.
Exports of U.S. crude have surged to a record at nearly 4 million bbl/d after Washington lifted a ban in late 2015.
Recommended Reading
Seadrill to Adopt Oil States’ Offshore MPD Technology
2024-09-17 - As part of their collaboration, Seadrill will be adopting Oil States International’s managed pressure drilling integrated riser joints in its offshore drilling operations.
Subsea 7 Secures Sizable GoM Contract
2024-08-16 - Offshore activity on Subsea7’s project is expected to begin in 2026.
E&P Highlights: Aug. 12, 2024
2024-08-12 - Here’s a roundup of the latest E&P headlines, with a major project starting production in the Gulf of Mexico and the latest BLM proposal for oil and gas leases in North Dakota.
TGS Grants Early Access to CCS Data Along Texas, Louisiana Gulf
2024-07-15 - TGS’ carbon storage dataset covers the available Texas General Land Office lease blocks and is scheduled for release in early August.
Helix Awarded Vessel Service, Charter Contracts Off Brazil
2024-08-28 - Helix Energy Solutions Group was awarded new three-year charter and service contracts, valued at an estimated $786 million, from Petrobras for Siem Helix 1 and Siem Helix 2.