December 14, 2012 [OPIS] - Plains All American Pipeline LP said on Thursday that it has closed the previously announced $500 million acquisition of four operating crude rail terminals, one terminal under development and various contractual arrangements from U.S. Development Group.
This acquisition deal was first announced on Dec. 5.
The assets acquired include three crude oil rail loading terminals located in the Eagle Ford, Bakken and Niobrara producing regions with an aggregate daily loading capacity of about 85,000 b/d, a rail unloading terminal at St. James, La., with capacity of about 140,000 b/d and a project to construct a crude oil unloading terminal near Bakersfield, Calif.
The Partnership stated that following the acquisition and taking into account projects currently under development, Plains’ North American crude oil rail business platform will include five loading terminals and three unloading terminals.
Crude oil loading capacity is expected to total about 250,000 b/d, with five facilities located in or near key producing areas extending from the U.S. Rockies to South Texas.
Unloading capacity is expected to total 335,000 b/d with terminals located on the East Coast, Gulf Coast and West Coast.
The West Coast project will connect with Plains’ West Coast pipeline and terminal network and will have access to refinery markets in both Northern and Southern California.
Plains also owns an extensive network of rail facilities for natural gas liquids (NGLs) that extends throughout the U.S. and Canada and includes 18 active loading and/or unloading terminals.
To support its current and planned activities for crude oil and NGL movements by rail, the partnership expects to have approximately 6,700 railcars under lease by the end of 2013.
