Feb 09, 2005 |
PAA Acquires Canadian Pipeline Asset |
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
Plains All American Pipeline Acquires Canadian Pipeline Asset
(Houston – February 9, 2005) Plains All American Pipeline, L.P. (NYSE: PAA) announced today that through its subsidiary, Plains Marketing Canada, L.P., it has acquired the Joarcam Pipeline System from Joarcam Pipeline, LLC and SES Equities, Ltd. The effective date for the transaction was January 31, 2005.
The Joarcam Pipeline System is comprised of approximately 36 miles of 6-inch gathering and mainline crude oil pipelines. The system, which has a current operating capacity of approximately 7,500 barrels per day, originates at Camrose, Alberta and delivers crude oil into the Enbridge Pipeline at Edmonton.
"This acquisition is notable as it gives us our first direct pipeline transportation route to the Edmonton market hub," said W. David Duckett, President of Plains Marketing Canada, L.P. "We believe that this asset will enable us to better serve our customers in the area." Duckett also indicated that the purchase price for the transaction was undisclosed, but in the aggregate did not exceed $10 million, including additional capital required. After completion of the anticipated modifications and enhancements, the pipeline is expected to have an operating capacity of approximately 13,000 barrels per day.
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, demand for various grades of crude oil and resulting changes in pricing conditions or transmission throughput requirements, successful third party drilling efforts, availability of third party production volumes for transportation and marketing, political and economic stability of foreign sources of crude oil, 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, weather interference, and other factors and uncertainties inherent in the marketing, transportation, terminalling, gathering and storage of crude oil 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, in the United States and Canada. 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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