Plains All American to expand major Permian oil pipeline system

Houston-based Plains All American and Magellan Midstream Partners said Tuesday they’ll expand the capacity of the BridgeTex Pipeline system that delivers oil from West Texas’ Permian Basin to the Houston area.

The pipeline network is considered one of the major arteries through which to transmit crude from the increasingly active Permian as the oil sector slowly begins to rebound from a two-year bust. The Permian is now home to more than half of the nation’s active drilling rigs.

Plains and Oklahoma-based Magellan, which each own half of BridgeTex, said they’ll increase the daily capacity from 300,000 barrels to 400,000 barrels a day. The project is expected to be completed by the end of June.

The 20-inch BridgeTex pipeline system transports crude Colorado City, Texas through eastern Houston and into Texas City to reach the Gulf Coast’s refining network. A newly-constructed origin point in Bryan will soon begin operations to deliver oil to Houston.

Plains purchased a 50 percent interest in the pipeline network two years ago from Houston-based Occidental Petroleum in a $1.1 billion deal.