The Building Boom Continues as Another New Permian Basin Oil Pipeline Is Underway
https://www.fool.com/investing/2018/09/04/the-building-boom-continues-as-another-new-permian.aspxSep 4, 2018
Oil pipeline capacity in the Permian Basin is quickly filling to the brim due to the region's fast-paced growth. That's after output rocketed a jaw-dropping 38% over the past year to more than 3.3 million barrels per day (BPD), which is closing in on the region's 3.6 million BPD of pipeline capacity. That looming shortage has caused drillers in the area to slow their pace until new pipelines come online toward the end of next year.
In addition to those pipelines already under construction, companies continue to pitch new projects to shippers in hopes of locking in the next wave of growth. The latest entry into this building boom is the proposed Permian Gulf Coast pipeline, which is a joint venture between Energy Transfer Partners (NYSE:ETP), Magellan Midstream Partners (NYSE:MMP), MPLX (NYSE:MPLX), and Delek US Holdings (NYSE:DK). The line could be in service as soon as mid-2020 if everything goes according to plan.
Drilling down into the latest project
Energy Transfer, MPLX, Magellan Midstream, and Delek made a joint announcement this week that they'd received enough commitments to proceed with the construction of a new 30-inch pipeline to move oil from the Permian to the Gulf Coast. The 600-mile line would transport oil from several points of origin in the Permian to Energy Transfer's Nederland, TX, terminal as well as Magellan's East Houston, TX, terminal, where crude could then reach its ultimate destination through their distribution systems....