April 2019, Vol. 246, No. 4

Projects

Plains Expects Reversed Capline Crude Pipeline Service to Begin 2020

Plains All American Pipeline plans for the reversed Capline crude pipeline, from the U.S. Midwest to the Gulf Coast, to begin service in the third quarter of 2020.

The target in-service date for the reversed line is the third quarter 2020 for light oil service and early 2022 for heavy oil service, the company said on its quarterly earnings call with analysts.

“The capacity from Cushing (Oklahoma) down to St. James (Louisiana) should be available on a quicker time frame than heavy moving down from Patoka (Illinois),” CEO Willie Chiang said during the call.

Pending a successful open season, in which companies gauge shipper interest for the proposal, the Cushing to St. James movement would include a 200,000 bpd of expansion and a modest extension of the Diamond JV pipeline that will connect to Capline, Plains said.

Capline is the largest crude pipeline that currently runs from the Gulf Coast to refineries in the Midwest. Volumes on Capline, once a major artery for imports and Gulf of Mexico crude used by U.S. Midwest refiners, have declined sharply as the U.S. shale boom pushed inland crude to the East Coast and Gulf Coast.

The company said it is also making progress on its Cactus II pipeline with partial service expected late in the third quarter of 2019 and full-service plan by April 2020.

Plains said its Corpus Christi, Texas, and St. James facilities could both could be explored further for crude export capabilities.