Plains All American raises spending by $100 million

Plains All American Pipeline LP raised its projected spending for 2017 by $100 million and said it now expects to spend $900 million on growth projects, the Houston Business Journal reported.

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The Houston-based company will pay $50 million for a joint-venture pipeline expansion with Phillips 66 in Oklahoma, the company’s chief operating officer Willie Chiant told HBJ, expanding the STACK Pipeline capacity from 100,000 to 250,000 barrels per day and extending the line’s origin point 35 miles west of the current Cashion, Oklahoma location.

With the spending increase, this year’s growth budget is significantly below that of 2016 and 2015 where about $1.4 billion and $2.2 billion respectively were spent on growth.

“What we did not anticipate was weakness in our natural gas liquids business that would make the first nine months or so of 2017 even more challenging than we thought,” Plains CEP Greg Armstrong said during the Q2 earnings call.

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