Plains All American Pipeline, L.P. (NYSE:PAA),
today announced that it is proceeding with a new construction and
expansion project serving the Bone Spring play in the Delaware Basin of
West Texas. The Bone Spring project includes adding 6 miles of new six
inch pipe to an existing system and constructing 20 miles of new twelve
inch pipe. The project is designed to initially transport up to 65,000
barrels per day of crude oil and will provide additional take-away
capacity for production primarily in Ward, Winkler, Reeves and Loving
counties. These pipelines will interconnect with PAA's Basin system and
PAA will also construct up to 100,000 barrels of new storage and
terminalling capacity that will be brought on-line in stages.
The project is expected to be in service by the end of 2011 and is
supported by long-term agreements with Anadarko Petroleum Corporation
(NYSE:APC) and Chesapeake Energy Corporation (NYSE:CHK). PAA owns and
operates approximately 3,500 miles of crude oil gathering and trunk
pipelines and 20 million barrels of crude oil storage capacity that
service the Permian Basin area. In 2010, PAA transported approximately
470,000 barrels of crude oil per day out of the Permian Basin.
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 |