Plains All American Announces New Projects in the Eagle Ford and Gulf Coast
HOUSTON--(BUSINESS WIRE)-- Plains All American Pipeline, L.P. (PAA) (NYSE:PAA) today announced it is expanding its Gardendale Gathering system and constructing a new condensate stabilization facility in the Eagle Ford and building a new pipeline along the Gulf Coast. The projects are expected to be completed by the end of 2013 at a total cost of approximately $190 million.
The Gardendale Gathering system expansion involves constructing four crude oil gathering pipelines extending from Dimmitt and La Salle counties and terminating at PAAs Gardendale Terminal in South Texas. The gathering lines, which range in size from 6 inches to 10 inches and total approximately 90 miles in length are designed to provide approximately 115,000 barrels per day of incremental gathering capacity. These lines will connect at Gardendale to long-haul pipelines, enabling shippers to deliver to Three Rivers, Corpus Christi or Houston area refiners. The new expansion pipelines are underpinned by producer agreements and are expected to be placed into service between the fall of 2012 and second-quarter 2013.
The new 80,000 barrel-per-day Eagle Ford condensate stabilization facility will be constructed adjacent to the Gardendale terminal. The facility is designed to extract Natural Gas Liquids (NGLs) from condensate, enabling the condensate to meet the shipping specifications of long-haul pipelines originating at Gardendale. The facilitys first 40,000 barrel-per-day phase, which also will include constructing related pressurized storage capacity, is expected to be in service in early October 2012. The second 40,000 barrel-per-day phase is expected to come into service near the end of 2012. The facility is underpinned by long-term commitments from producers on PAAs Gardendale Gathering system and has the ability to be expanded based on increased production.
The new Gulf Coast pipeline is a 24-inch, 40-mile crude oil pipeline that will originate from PAAs Ten Mile terminal in Mobile County, Ala. The project is underpinned by a long-term throughput and deficiency agreement with a shipper that includes the lease of approximately 1.5 million barrels of new and existing PAA storage capacity. The project is expected to be in service in the fourth quarter of 2013.
PAA owns a network of approximately 18,000 miles of liquids pipelines, approximately 120 million barrels of liquids storage capacity and handles more than 3 million barrels of physical product on a daily basis.
Plains All American Pipeline, L.P. is a publicly traded master limited partnership engaged in the transportation, storage, terminalling and marketing of crude oil and refined products, as well as in the processing, transportation, fractionation, storage and marketing of natural gas liquids. Through its general partner interest and majority equity ownership position in PAA Natural Gas Storage, L.P., PAA owns and operates natural gas storage facilities. PAA is headquartered in Houston, Texas.
Forward Looking Statements:
Certain matters discussed in this release are forward-looking statements that involve risks and uncertainties that could cause actual results or outcomes to differ materially from results or outcomes anticipated in the forward-looking statements. These risks and uncertainties include, among other things, shortages, cost increases or delays in receipt of supplies, materials or labor; inability to obtain, delays in the receipt of, or other issues associated with necessary licenses, permits, approvals, consents, rights of way or other governmental or third party requirements; the impact of current and future laws, rulings, orders, governmental regulations, accounting standards and statements and related interpretations; weather interference with business operations or project construction; environmental liabilities, issues or events that result in construction delays or otherwise impact targeted in-service dates; interruptions in service on third-party pipelines or facilities; general economic, market or business conditions and the amplification of other risks caused by volatile financial markets, capital constraints and pervasive liquidity concerns; and other factors and uncertainties inherent in the transportation, storage, terminalling and marketing of crude oil and refined products as discussed in the Partnerships filings with the Securities and Exchange Commission.
Plains All American Pipeline, L.P.
Roy I. Lamoreaux, 713-646-4222 800-564-3036
Director, Investor Relations
Source: Plains All American Pipeline, L.P.Copyright Business Wire 2012