Plains issues force majeure on Texas pipelines

Market: Condensate, Crude oil
17/02/21

Plains All American Pipeline has issued a force majeure on crude pipelines and gathering systems in Texas because of severe winter weather and related power outages.

The pipelines include the 670,000 b/d Cactus 2 line and the 390,000 b/d Cactus pipeline which move crude from west Texas to Corpus Christi.

Plains said the action was taken "due to the ongoing impacts from the below-freezing temperatures, ice and snow from the winter storm, which has caused power outages, road closures, and other delays which are impacting operations of the pipeline systems," according to a notice sent to shippers.

The force majeure, may cause shippers to see reductions to nominations for February ,the notice said.

Other pipelines included in the force majeure are the Sunrise 2 pipeline, the Basin system, the Iatan gathering system, the McCamey pipeline, the Mesa pipeline, the Midland South pipeline, the Spraberry pipeline system, the Pinon pipeline, the Scurry pipeline, the Mesa pipeline, the Permian basin system, the west Texas gathering system and the Wolverine gathering system.

Texas's primary electric grid operator said it expects power disruptions that have left millions in the dark and cold since 14 February and crippled crude and natural gas production will continue through the coming days.

Power is still out for an estimated 3.3mn customers in Texas. The Electric Reliability Council of Texas (ERCOT) said that under a best-case scenario, by today or tomorrow, the duration of rotating outages will be reduced to last no longer than 30 minutes to an hour.

By Eunice Bridges

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