Plains All American Pipeline, L.P. (NYSE: PAA)
today announced plans to construct its Shafter Expansion Project, which
consists of a new Liquefied Petroleum Gas (LPG) pipeline system and
related upgrades to its Shafter LPG processing facility near
Bakersfield, CA. The project is underpinned by a 5-year transportation
agreement with a subsidiary of Occidental Petroleum Corporation (NYSE:
OXY) and is currently expected to cost approximately $50 million. The
pipeline will link the Shafter facility with Occidental's Elk Hills gas
processing plant and related infrastructure. PAA has targeted placing
the project into service during the third quarter of 2012.
The Shafter Expansion Project involves constructing a 15-mile LPG
pipeline system with a designed throughput capacity of over 10,000
barrels per day as well as enhancing PAA's storage and rail capabilities
at its Shafter facility. PAA's Shafter facility currently includes
approximately 200,000 barrels of Natural Gas Liquid (NGL) storage, and a
processing facility with butane isomerization capacity of 14,000 barrels
per day and NGL fractionation capacity of 12,000 barrels per day. PAA
anticipates investing approximately $30 million on the Shafter Expansion
Project during 2011, and making the balance of the investment during
2012.
Plains All American Pipeline, L.P. is a publicly-traded master limited
partnership engaged in the transportation, storage, terminalling and
marketing of crude oil, refined products and liquefied petroleum gas and
other natural gas related petroleum products. Through its general
partner interest and majority equity ownership position in PAA Natural
Gas Storage, L.P. (NYSE: PNG), PAA is also engaged in the development
and operation of natural gas storage facilities. PAA is headquartered in
Houston, Texas.
Forward Looking Statements
Except for the historical information contained herein, the matters
discussed in this release are forward-looking statements that involve
certain risks and uncertainties that could cause actual results to
differ materially from results anticipated in the forward-looking
statements. These risks and uncertainties may include, among other
things: the availability of adequate third-party production volumes for
transportation on our pipelines and related systems and other factors
that could cause declines in volumes shipped, such as decline in
production from existing oil and gas reserves or failure to develop
additional oil and gas reserves; failure to implement or capitalize on
planned internal growth projects; fluctuations in refinery capacity in
areas supplied by our mainlines and other factors affecting demand for
various grades of crude oil; the impact of current and future laws,
rulings and governmental regulations; the effects of competition;
continued creditworthiness of, and performance by, our counterparties;
the currency exchange rate of the Canadian dollar; weather interference
with business operations or project construction; shortages of
materials, equipment or skilled labor, general economic, market or
business conditions; environmental liabilities or events that are not
covered by and indemnity, insurance or existing reserves; interruptions
in service and fluctuations in tariffs or volumes on third-party
pipelines or facilities and other factors and uncertainties inherent in
the transportation, storage, terminalling, and marketing of crude oil,
refined products and liquefied petroleum gas and other natural gas
related petroleum products 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 |