Plains All American Pipeline, L.P. (NYSE:PAA),
announced today that it has entered into a commitment to construct a new
130-mile crude oil and condensate pipeline, a marine terminal facility
and 1.5 million barrels of storage capacity to service growing Eagle
Ford production in south Texas. The project is expected to cost
approximately $330 million and to be in service in the fourth quarter of
2012. To underpin the project, PAA has secured a long-term throughput
agreement with Chesapeake Energy Marketing, Inc., a subsidiary of
Chesapeake Energy Corporation (NYSE: CHK). The project is designed to
provide approximately 300,000 barrels per day of take-away capacity from
the western region of the Eagle Ford play to Corpus Christi, TX and
other Gulf Coast markets.
PAA has agreed to provide Chesapeake Midstream Development, L.P. the
opportunity to acquire up to a 25% joint ownership interest in the
project. Additionally, PAA and Flint Hills Resources have executed a
Memorandum of Understanding regarding Flint Hills' potential joint
ownership in this project. Flint Hills Resources operates a 300,000 bpd
refinery in Corpus Christi.
PAA owns and operates a network of approximately 16,000 miles of liquids
pipelines, approximately 90 million barrels of liquids storage capacity
and handles over 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, 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 include, among other things,
failure to implement or capitalize on planned internal growth projects;
shortages or cost increases of supplies, materials or labor; the
availability of adequate third-party production volumes for
transportation and marketing in the areas in which we operate and other
factors that could cause declines in volumes shipped on our pipelines by
us and third-party shippers, such as declines in production from
existing oil and gas reserves or failure to develop additional oil and
gas reserves; continued creditworthiness of, and performance by, our
counterparties, including financial institutions and trading companies
with which we do business; the impact of current and future laws,
rulings, governmental regulations, accounting standards and statements
and related interpretations; weather interference with business
operations or project construction; 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
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 |