Plains Enters the Barge Business
Plains All American Pipeline, L.P. said that its subsidiary, Plains Marketing, L.P., has acquired a 50% membership interest in Settoon Towing LLC ("Settoon"). The effective date of the transaction was November 1, 2006 and the cash purchase price was approximately $33 million.
"We are pleased to enter the barge business by partnering with Settoon, an established company with over 30 years of experience in the marine transportation and storage business," said Greg L. Armstrong, Chairman and Chief Executive Officer of Plains All American. "Russ Settoon and his successful and dedicated team of employees have built an attractive business with an exemplary safety record. Their assets will expand the Partnership's crude oil transportation capabilities, predominantly in the coastal waters of the Gulf Coast. Going forward, we will selectively look to acquire additional marine transportation assets that will enhance our ability to provide value- added services to our producer and refinery customers." Armstrong noted that PAA has had a long-standing business relationship with Settoon and PAA is currently Settoon's largest customer with 22 tugs and 22 tank barges under charter.
Settoon Towing LLC owns and operates a fleet of 57 transport and storage barges (including three on lease or charter) as well as 30 transport tugs (including three on lease or charter). Settoon's core business is the gathering and transportation of crude oil and produced water from inland production facilities across the Gulf Coast. It conducts its operations out of two facilities in south Louisiana, which are strategically located on the Gulf Intracoastal Waterway and provide access to numerous inland waterways.
Plains All American Pipeline, L.P. is engaged in interstate and intrastate crude oil transportation and crude oil gathering, marketing, terminalling and storage, as well as the marketing and storage of liquefied petroleum gas and other petroleum products, in the United States and Canada. Through its 50% ownership in PAA/Vulcan Gas Storage LLC, the Partnership is engaged in the development and operation of natural gas storage facilities. The Partnership's common units are traded on the New York Stock Exchange under the symbol "PAA". The Partnership is headquartered in Houston, Texas.
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Company: Settoon Towing LLC more info
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