The new pipeline called Cactus Pipeline will be 310 miles long and 20in wide, and is expected to be completed at an investment of $350m to $375m.
Initial capacity of the pipeline is expected to be about 200,000 barrels per day, which can be increased as per demand.
Cactus Pipeline is anticipated to supply sweet and sour crude oil from the Permian Basin to the PAA/Enterprise Products Partners Eagle Ford Joint Venture (JV) Pipeline.
The Eagle Ford JV Pipeline serves the Three Rivers and Corpus Christi markets and can supply the Houston-area market through a connection to the Enterprise South Texas Crude Oil Pipeline.
Crude oil transported via the pipeline will have access to rail loading capacity at PAA’s Gardendale station and access to the Eagle Ford JV barge dock facility in the Corpus Christi area.
Cactus Pipeline is expected to begin operations in the first quarter of 2015.
The company has already signed a letter of intent with a third party securing long-term commitment for the pipeline’s majority of capacity and is discussions with other potential shippers to secure commitment for the remaining capacity.
