Plains All American To Convert LPG Pipeline To Crude Service

Plains All American Pipeline, L.P. announced plans to convert an existing Oklahoma LPG pipeline into crude oil service. The pipeline, which extends from Medford, OK to PAA’s crude oil terminal facility in Cushing, OK, will provide an initial crude oil throughput capacity of 12,000 bpd by January 2012 and will be expanded to 25,000 bpd by July 2012.
  In other news, Plains All American Pipeline’s wholly owned subsidiary, Plains Midstream Canada ULC, has entered into a definitive agreement with BP to acquire BP’s Canadian NGL and LPG business for total consideration of approximately $1.67 billion. The acquisition is subject to regulatory approval and customary closing conditions and is anticipated to close late in the first quarter or early in the second quarter of 2012.
  Assets to be acquired include ownership interests of varying levels in and contractual rights relating to approximately 2,600 miles of pipelines, approximately 20 MMbbls of LPG storage capacity, seven fractionation plants with approximately 232,000 bod of capacity, multiple straddle plants and two field gas processing plants with an aggregate capacity of approximately 8 Bcf/d, as well as approximately 10 MMbbls of long-term and seasonal NGL inventory as of October 1, 2011. The business also includes various supply contracts at other field gas processing plants, shipping arrangements on third-party NGL pipelines and long-term leases on 720 rail cars used to move product among various locations.