Plains All American Pipeline, L.P. (NYSE: PAA)
today announced that it has completed or is nearing completion on the
construction of new crude oil pipeline projects that total over 145
miles and are expected to provide 200,000 barrels per day of additional
takeaway capacity from the Bone Spring, Spraberry and Wolfberry
producing areas in nine West Texas counties. Total estimated cost of
these pipelines is $135 million.
"These projects provide additional pipeline gathering capacity in areas
with significant production growth and will have the ability to supply
crude oil to Basin Pipeline, Longhorn Pipeline and/or West Texas Gulf
Pipeline," said Harry N. Pefanis, President and COO of Plains All
American.
The new 15-mile Barstow pipeline project, which was recently brought
into service, extends south from PAA's Bone Spring pipeline and will
initially provide 50,000 barrels per day of take-away capacity to
service growing production in Ward, Reeves and Pecos counties. The
Barstow pipeline will receive crude oil from two truck injection
stations and has a long-term delivery commitment from Hoover Energy's
Pecos Crossing pipeline.
The new 50-mile North Spraberry pipeline will extend northward from
Midland, Texas to Martin County, Texas and west to Andrews County, Texas
to transport Wolfberry and Spraberry production. The North Spraberry
pipeline will have an initial capacity of 40,000 barrels per day and is
expected to be brought into service in stages through the end of 2012.
The new South Spraberry trunk line consists of a 50-mile pipeline
extending from Midland, Texas to northwest Reagan County and connecting
to PAA's existing Spraberry Pipeline that runs to southeast Reagan
county. The South Spraberry trunk line will provide 60,000 barrels per
day of capacity for Glasscock, Reagan, Irion and Crockett Counties.
Included with the South Spraberry trunk line project are two gathering
laterals: one line extending to Best and another line extending to
Barnhart. In addition, a new 15-mile pipeline providing 50,000 barrels
per day of capacity will be constructed from Garden City, Texas to the
South Spraberry trunk line. The South Spraberry segments are expected to
be in service by the end of 2012.
For additional commercial information regarding these expansions, please
contact:
Joe Richards
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Martin McHale
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Dir. -- Pipeline Commercial Operations
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Mgr. – Pipeline Commercial Operations
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713-646-4629
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432-221-7115
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PAA owns and operates approximately 3,500 miles of pipeline, 20 million
barrels of storage capacity and handles over 500,000 barrels of crude
oil per day in the Permian Basin area. Throughout North America, PAA
owns a network of approximately 18,000 miles of liquids pipelines, 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. (NYSE:PNG),
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, refined products and natural gas liquids as
discussed in the Partnership's 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