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Plains All American’s updated capital plan also includes Canadian gathering systems and gathering projects across the Delaware and Midland basins.
Published by Allstream Insiders
Allstream Insiders Summary
Plains All American Pipeline has raised its 2026 organic-growth capital guidance from $350 million to a range of $400 million to $450 million, with the updated program including a 75,000-barrel-per-day expansion of the Cactus III crude-oil pipeline. Plains also identified Canadian gathering systems and Permian Basin gathering projects across the Delaware and Midland basins as components of the revised program.
The company’s second-quarter release does not assign separate budgets or construction schedules to those individual projects. Plains’ Form 10-Q separately projects approximately $535 million of consolidated investment capital for 2026, or approximately $425 million net to its interest. That projection includes approximately $10 million related to the Canadian natural gas liquids business before its May divestiture.
Plains also reduced its 2026 maintenance-capital guidance by $10 million. The Form 10-Q lists approximately $195 million of consolidated maintenance capital, or $175 million net to Plains’ interest, with the change attributed largely to the timing of the Canadian NGL divestiture.
Cactus III is the former EPIC Crude Oil Pipeline system, which connects Permian and Eagle Ford production with the Corpus Christi market. Plains completed its acquisition of the system during the fourth quarter of 2025 and reports a 100% equity interest. The reported 75,000-barrel-per-day expansion is an incremental capacity project; the August 7 release and Form 10-Q do not provide its project-specific cost, engineering configuration or completion date.
Plains 2026 Capital and Project Tracker
| Program or project | Company-reported scope | 2026 value or capacity | Reported status |
|---|---|---|---|
| Organic-growth capital program | Cactus III expansion, Canadian gathering systems and Permian gathering projects | $400M-$450M | Guidance increased from $350M |
| Total investment capital | Companywide investment program, including approximately $10 million tied to the divested Canadian NGL business before closing; the net figure excludes expenditures attributable to noncontrolling interests, primarily the Permian joint venture | Approximately $535M consolidated; $425M net to Plains’ interest | Full-year 2026 projection in the Form 10-Q |
| Cactus III expansion | Incremental capacity on the crude-oil pipeline serving the Permian/Eagle Ford-to-Corpus Christi corridor | 75,000 bpd | Included in the updated growth program; project schedule not stated |
| Permian gathering projects | Gathering investments across the Delaware and Midland basins | Project-specific values not stated | Included in the updated growth program |
| Canadian gathering systems | Gathering-system investments within Plains’ retained Canadian crude-oil business | Project-specific values not stated | Included in the updated growth program |
| Maintenance capital | Work intended to maintain existing operating capacity | Approximately $195M consolidated; $175M net to Plains’ interest | Net guidance reduced by $10M, largely because of NGL-divestiture timing |
The consolidated and net-to-interest figures are different views of Plains’ companywide capital program. They should not be added together or treated as budgets for Cactus III or any single gathering project.
What Is Plains Expanding on Cactus III?
Plains says it is adding 75,000 barrels per day of capacity to Cactus III, the crude-oil pipeline system formerly known as the EPIC Crude Oil Pipeline. The project is included in the company’s higher 2026 organic-growth capital range, but the reviewed release and Form 10-Q do not identify how much of the $400 million to $450 million is allocated to the expansion.
Before Plains acquired the system, the company described the EPIC platform as including approximately:
- 800 miles of long-haul pipelines, including the EPIC Crude Oil Pipeline
- More than 600,000 barrels per day of operating capacity
- 7 million barrels of operational storage
- More than 200,000 barrels per day of export capacity
The system provides long-haul crude-oil transportation from the Permian and Eagle Ford basins to the Gulf Coast market at Corpus Christi, Texas. Plains acquired the full equity interest in two closings during the fourth quarter of 2025 and subsequently renamed the system Cactus III as part of its integration with the existing Cactus pipeline network.
Where Is Plains Investing in Permian Gathering?
The updated program includes gathering projects in both the Delaware and Midland basins, the two principal sub-basins of the Permian. Plains did not identify individual project names, route lengths, gathering capacities, customer dedications or service dates in the second-quarter release.
The Form 10-Q adds a portfolio-level indicator: Plains expects approximately half of its projected 2026 investment capital to be deployed in assets held through the Plains Oryx Permian Basin joint venture. Plains owns 65% of that joint venture, based on the company’s disclosure that the noncontrolling interest was 35% as of June 30, 2026.
That allocation signals continued investment across Plains’ Permian platform, but it does not establish that half of the capital is assigned only to the newly mentioned gathering projects. Plains defines investment capital as expenditures that expand the operating or earnings capacity of its assets, so the Permian joint-venture allocation can include other qualifying expansion work.
Why Does the Program Still Include Canadian Gathering Systems?
Plains completed the sale of substantially all of its Canadian NGL business to Keyera on May 12, 2026, but its transaction announcement said the company retained all of its Canadian crude-oil assets. The inclusion of Canadian gathering systems in the August growth plan is consistent with that retained crude-oil footprint.
Plains’ Form 10-Q reports cash consideration of approximately C$5.328 billion, or approximately US$3.883 billion, including estimated working-capital and other adjustments and subject to post-closing adjustments. That transaction consideration is separate from the 2026 organic-growth capital program and should not be combined with the $400 million to $450 million range.
The sale also affected the maintenance program. Plains attributes the $10 million reduction in net maintenance-capital guidance largely to the timing of the divestiture. The company’s current Form 10-Q projection is approximately $195 million on a consolidated basis and $175 million net to its interest.
What Could the Program Mean for the Midstream Supply Chain?
The updated capital range identifies areas of planned spending, but the reviewed release and Form 10-Q do not identify project-level procurement packages or contractor awards for that work. Based solely on the disclosed pipeline and gathering scopes, future execution could involve:
- Hydraulic engineering and capacity studies for the Cactus III expansion
- Pumping, metering, electrical, automation and control-system modifications
- Pipeline integrity assessment, pressure testing and commissioning support
- Gathering-line pipe, valves, fittings, coatings and material logistics
- Civil construction, right-of-way preparation, trenching, welding and tie-ins for gathering projects
- Lease automatic custody transfer units, tankage, pumps and gathering terminals
- Supervisory control and data acquisition, communications and leak-detection systems
- Corrosion control, cathodic protection, inspection and maintenance services
The reviewed release and Form 10-Q do not describe whether the Cactus III capacity addition uses new mainline pipe, a loop, pump-station modifications, operational optimization or a combination of measures. The listed work categories are conditional Allstream analysis and are not confirmed solicitations, awards or guarantees of outside work.
Allstream Perspective
The most material infrastructure change in Plains’ second-quarter update is the addition of the 75,000-barrel-per-day Cactus III expansion to a larger 2026 organic-growth program. It adds incremental capacity to a long-haul system linking Permian and Eagle Ford supply with Corpus Christi, while the Delaware and Midland gathering projects could extend the upstream connections feeding Plains’ broader network.
The companywide capital figures also require careful separation. The $400 million to $450 million range is Plains’ updated organic-growth guidance. The Form 10-Q separately presents approximately $535 million of consolidated investment capital and $425 million net to Plains’ interest. Plains says the net figure excludes expenditures attributable to noncontrolling interests, primarily the Permian joint venture, and the projection includes approximately $10 million associated with the divested Canadian NGL business before closing. None of those figures is a disclosed standalone budget for Cactus III.
For contractors and equipment suppliers, the next decision-useful disclosures include the engineering method and schedule for the Cactus III expansion, named Permian gathering projects, route and capacity details, permitting activity and any announced construction or material awards. Based on the reviewed disclosures, the updated program is a capital-allocation signal rather than a published bid list.
