Plains All American’s Permian Pipelines Facing Quality Issues

Plains All American’s crude oil pipelines linking the Permian shale basin to the Corpus Christi export hub are facing quality issues related to high mercaptans, or naturally-occurring sulfur compounds, according to sources familiar with the matter and a notice seen by Reuters.

Plains in recent days has sent notices to shippers that it will begin charging a half a dollar fee on every barrel that fails to meet mercaptan specifications on some of its pipelines in the Gulf Coast region, according to a notice to shippers seen by Reuters and two of the sources.