Plains acquires additional
Capline, tankage interest
Jan 6, 2010 11:24 AM
Plains All American Pipeline LP announced that through a series of transactions it has acquired an additional interest in the Capline Pipeline system and associated tankage for aggregate consideration (net of cash and assumed liabilities) of approximately $64 million. These assets were acquired either directly or indirectly from Chevron, Marathon Oil Corporation, and Shell Pipeline Company LP.
Assets acquired include a 21% undivided interest in Capline and a 100% interest in 720,000 barrels of tankage at Patoka IL. As a result of this transaction, PAA is now the largest owner in Capline with an aggregate interest of 43%. The partnership acquired its initial 22% interest in Capline in 2004.
Capline is a 633-mile, 40-inch mainline crude oil pipeline that originates in St James LA and terminates in Patoka. This system is one of the primary transportation routes for shipping crude oil and condensate to the Midwest, accessing about 3 million barrels per day of refining capacity in PADD II. With two active docks capable of handling 600,000-barrel tankers as well as access to the Louisiana Offshore Oil Port and PAA’s St James terminal, Capline is a key transporter of sweet and light sour foreign crude to PADD II. Total designed operating capacity of Capline is about 1.1 million barrels per day, with approximately 470,000 barrels per day of capacity attributable to PAA’s interest.
Capline is also connected to PAA’s existing St James and Patoka terminal facilities, which upon completion of announced expansions are designed to have capacities of about 7 million barrels and 4 million barrels, respectively.
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