NEW YORK, June 3 (Reuters) - U.S. energy regulators on Monday partially approved the rate structure and terms of service for Plains All American Pipeline LP’s Cactus II crude line from the Permian basin to the Corpus Christi, Texas, area, according to a filing.
While regulators approved most conditions put forth by Plains, they declined to approve a request for the option to hold another open season to solicit shipper commitments for up to 90 percent of the pipeline’s capacity upon the expiration or early termination of service agreements.
The 585,000 barrels-per-day (bpd) Cactus II pipeline is one of several large pipeline projects scheduled to come online this year that connect the Permian basin, the largest oilfield in the United States, to the Gulf Coast. The Cactus II line is expected to begin service in the third quarter. (Reporting by Devika Krishna Kumar and Laila Kearney; Editing by Sandra Maler)