MIDLAND- A new pipeline will be pumping crude oil from the Permian Basin to the Gulf Coast and it will happen much faster than ever before.
It's no secret the Basin is producing more crude than ever, but right now, the path to get it where it needs to go is too long.
"It will connect Crane Magellan, gets crude out of the Permian Basin, not to Midland not to Cushing, and that's what's critical about it," Randy Geiselman, Vice President of Advantage Pipeline, said.
Maps and blueprints show a 75 mile pipeline project that will carry oil from the Delaware Basin near Pecos to Magellan's station in Crane.
"When we have the line full, we could move about 150,000 barrels a day and deliver those barrels into Magellan's Crane station," Geiselman said. "Which would give the barrels the opportunity to get to the Gulf Coast."
Oil companies have used trucks to haul the crude oil to the Gulf Coast and Advantage Pipeline says this will cut their time in half and benefit the price of crude oil.
"Which would in turn increase the value of the crude at the least," Geiselman said.
This project has a price tag of over $60 million and construction is expected to start near the end of October.
It's expected to be completed by March of 2013.