December 14, 2012 [OPIS] - Plains All American Pipeline LP said on Thursday it has acquired certain crude oil and condensate gathering assets located in the Eagle Ford area of South Texas from a subsidiary of Chesapeake Energy Corporation.
The purchase price was approximately $125 million.
The acquired assets include approximately 40 miles of crude oil/condensate gathering pipelines with a throughput capacity of approximately 50,000 b/d; 150,000 bbl of existing crude oil and condensate storage capacity; 300,000 bbl of storage capacity under construction and a truck unloading terminal.
In support of the transaction, Chesapeake has provided long-term acreage dedications of future production in Webb and Dimmit counties.
The acquired assets are complementary to and will be connected with PAA’s existing crude oil and condensate gathering systems.
On Tuesday, Chesapeake said it will sell a substantial majority of its remaining midstream assets to Access Midstream Partners LP for approximately $2.16 billion.
PAA owns a network of approximately 18,000 miles of liquids pipelines, 120 million barrels of liquids storage capacity and handles more than 3 million bbl of physical product on a daily basis.
