A subsidiary of Plains All American Pipeline LP (NYSE: PAA) said Jan. 22 it had received sufficient binding commitments following the closing of its initial open season and was proceeding with construction of a new pipeline system from the Permian Basin to the Corpus Christi/Ingleside area.

Permitting, right-of-way and procurement activities are underway for the pipeline system, known as the Cactus II Pipeline, which are subject to receipt of necessary permits and regulatory approvals. Plains said it expects the Cactus II Pipeline will add up to 585,000 barrels per day of Permian pipeline takeaway capacity when it is operational, which is targeted in third-quarter 2019.

The Cactus II Pipeline includes a combination of existing pipelines and two new pipelines. The first new pipeline will extend from Wink South to McCamey, Texas, and the second pipe will extend from McCamey to the Corpus Christi/Ingleside area.

In addition, Plains said it received sufficient customer interest to conduct a second binding open season related to the Cactus II Pipeline.

Origin points for the second open season will be Orla, Wink South, Midland, Crane and McCamey, Texas. This open season provides an opportunity for additional shippers to enter into transportation services agreements that provide for long-term crude oil transportation on Cactus II Pipeline, according to the company press release.

Based on market demand, the second open season for Cactus II Pipeline will also include additional committed tariff rate structures but is otherwise consistent with the terms of the first open season, the release said.