Plains Expands Crude Oil Gathering System in Midland Basin

en.Wedoany.com Reported - On November 6, U.S. oil and gas pipeline operator Plains All American Pipeline announced a crude oil gathering system expansion plan in the Permian Basin. Through its joint venture Plains Oryx Permian Basin, the company will expand its gathering network in the Midland Basin of Texas, adding approximately 270,000 acres of long-term service coverage area. The project is supported by a 10-year agreement with a large integrated oil producer and is expected to connect approximately 225,000 barrels per day of crude oil volumes starting in the fourth quarter of 2027.

The new service area will be integrated into Plains Oryx Permian Basin's existing crude oil gathering network. According to the company's third-quarter 2026 earnings announcement, the expansion will increase dedicated gathering service acreage in the Midland Basin and secure associated crude oil transportation demand through long-term agreements. Upon completion of the expansion, Plains' long-term agreement coverage area across the entire Permian Basin will increase to approximately 5.3 million acres.

Plains management further clarified during the earnings conference call held on November 6 that the 225,000 barrels per day primarily corresponds to the partner producer's existing crude oil production, rather than the full incremental volume from future new well startups. The relevant crude oil will need to be connected to Plains' network after the gathering connection works are completed, and is expected to begin contributing to company operations between late 2027 and early 2028.

The company plans to primarily utilize existing gathering facilities to receive the aforementioned crude oil and will carry out supporting construction based on the connection requirements of the new service area. Management will provide more specific capital expenditure and project implementation timelines in February 2027.

Plains' reported third-quarter 2026 operating data shows that billed crude oil pipeline volumes in the Permian Basin averaged approximately 8.07 million barrels per day, up from 7.49 million barrels per day in the same period of 2025. The company's total billed crude oil pipeline volumes increased from 9.88 million barrels per day to approximately 10.5 million barrels per day over the same period, with increased crude oil production in the Permian Basin driving the growth in pipeline system throughput.