HOUSTON — Crude oil transporter Plains All American Pipeline LP said Tuesday it expects the first phase of its planned terminal in Louisiana to begin operations in the first quarter of 2007 at a cost of $93 million.

The new St. James, La., terminal, construction of which began earlier this year, includes seven crude oil storage tanks with capacity to hold about 3.5 million barrels.

The second phase of the project includes 2.7 million barrels of additional tank capacity at Plains’ crude oil storage facility and terminal in St. James. The addition will expand capacity to 6.2 million barrels and is expected to cost $64 million. The addition is slated for startup in the first quarter of 2008.

Plains expects to spend $20 million to $22 million on the second phase of the project this year.

“We believe that foreign imports will continue to increase as a result of increased U.S. crude oil consumption and domestic crude oil production declines,” said Chairman and Chief Executive Greg L. Armstrong, adding that the expansion will support the company’s foreign crude oil import business.

The company hired Oklahoma-based Matrix Service Inc. as contractor of both phases of the project.