The project is underpinned by a five-year transportation agreement with a subsidiary of Occidental Petroleum and is currently expected to cost approximately $50m.
The pipeline will link the Shafter facility with Occidental’s Elk Hills gas processing plant and related infrastructure.
The Shafter project involves constructing a 15-mile LPG pipeline system with a designed throughput capacity of over 10,000 barrels per day as well as enhancing PAA’s storage and rail capabilities at its Shafter facility.
The facility currently includes approximately 200,000 barrels of natural gas liquid (NGL) storage, and a processing facility with butane isomerization capacity of 14,000 barrels per day and NGL fractionation capacity of 12,000 barrels per day.
PAA anticipates investing approximately $30m on the Shafter Expansion project during 2011, and making the balance of the investment during 2012.
The company said it will place the project into service during the third quarter of 2012.
