Plains All American Pipeline, L.P. (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 PAA's 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 facility's 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 PAA's 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 PAA's 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. (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 and refined products 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 –
Director, Investor Relations