Sep 15, 2004 |
PAA Acquires Propane Storage Facility from Koch Hydrocarbon |
Contacts:
Phillip D. Kramer
Executive Vice President and CFO
713/646-4560 – 800/564-3036
A. Patrick Diamond
Manager, Special Projects
713/646-4487 – 800/564-3036
(Houston – September 15, 2004) Plains All American Pipeline, L.P. (NYSE: PAA) announced today that it has acquired, through its subsidiary Plains LPG Services, L.P., the Schaefferstown Propane Storage Facility from Koch Hydrocarbon, L.P. The total purchase price was approximately $32 million. In connection with the transaction, the Partnership also acquired an additional $14.2 million of inventory. The transaction was funded through a combination of cash on hand and borrowings under the Partnership’s revolving credit facilities.
The facility is located approximately 65 miles northwest of Philadelphia near Schaefferstown, Pennsylvania, and has the capacity to store approximately 20.0 million gallons of refrigerated propane. In addition, the facility has 19 bullet storage tanks with an aggregate capacity of 570,000 gallons. Propane is delivered to the facility via truck or pipeline and is transported out of the facility by truck. In addition, the transaction also included approximately 61 acres of land and a truck rack.
“This asset will further support the expansion of our LPG business in Canada and the northeastern United States and enable us to better serve our expanding customer base,” said W. David Duckett, President of Plains LPG Services, L.P. “The acquisition of the Schaefferstown facility increases the Partnership’s LPG storage capacity by approximately 19% to approximately 130 million gallons.”
Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, successful integration and future performance of assets acquired, refinery downtime, unusual weather patterns, continued creditworthiness of, and performance by, our counterparties, the effects of competition, the success of our risk management activities, the effect of changes in the value of the Canadian dollar, regulatory changes, and other factors and uncertainties inherent in the marketing, gathering and storage of LPG discussed in the Partnership’s filings with the Securities and Exchange Commission.
Plains All American Pipeline, L.P. is engaged in interstate and intrastate crude oil transportation, terminalling and storage, as well as crude oil and LPG gathering and marketing activities, primarily in Texas, Oklahoma, California, Kansas, Louisiana and the Canadian Provinces of Alberta and Saskatchewan. The Partnership’s common units are traded on the New York Stock Exchange under the symbol “PAA.” The Partnership is headquartered in Houston, Texas.
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