“These bolt-on acquisitions involve assets that complement our existing assets and operations in each of the respective geographic areas,” stated Greg L. Armstrong, Chairman and CEO of Plains All American Pipeline. “We intend to continue to actively pursue additional organic and acquisition growth opportunities.” Armstrong noted that approximately 85% of the purchase price of these acquisitions was funded prior to June 30, 2010.
The White Cliffs Pipeline interest will be purchased indirectly from SemGroup Corporation in conjunction with the exercise of purchase options by subsidiaries of Western Gas Partners, LP and Noble Energy Inc. White Cliffs Pipeline L.L.C. owns a 526-mile, 12-inch common-carrier crude oil and condensate pipeline that originates in Platteville, Colorado and terminates in Cushing, Oklahoma. The pipeline, which transports production from the DJ Basin and the Mid-Continent region to the Cushing interchange, has an initial design capacity of approximately 30,000 barrels per day and the potential to expand to 70,000 barrels per day.
PAA has also acquired an approximate 11% interest in the Capline pipeline system from a subsidiary of BP p.l.c., which increased PAA’s interest in Capline to approximately 54%. Capline is a 633-mile, 40-inch mainline crude oil pipeline that originates in St. James, Louisiana, and terminates in Patoka, Illinois. This system is one of the primary transportation routes for shipping crude oil and condensate to the Midwestern U.S., accessing approximately 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 approximately 1.1 million barrels per day, with approximately 600,000 barrels per day of capacity attributable to PAA’s aggregate interest. Capline is also connected to PAA’s existing St. James and Patoka area terminal facilities, which upon completion of the Patoka Phase III expansion will have approximately 7 million barrels and 5 million barrels of storage capacity, respectively.
Other acquired assets include: 12 storage tanks with a combined capacity of 55,000 barrels, 34 miles of pipeline, a truck and rail terminal and approximately 20 acres of land.
