Plains All American Acquires Pipeline Assets From El Paso
Plains All American Pipeline has acquired a package of south Louisiana terminalling and gathering assets from El Paso. The purchase price for the package was approximately $10 million and was funded with cash on hand and borrowings under the Partnership's revolving credit facility.
"These assets comprise an integrated condensate and crude oil gathering and marketing business and complement our existing operations in south Louisiana," said Greg L. Armstrong, Chairman and Chief Executive Officer of the Partnership. "In addition, we believe the system is favorably leveraged to the growing volume of crude oil and natural gas production in the Gulf of Mexico."
The assets that are included in the package are as follows with the ownership or leased interests in parentheses:
- Atchafalaya Pipeline (33%)
- Eugene Island Flow System (38% - 56%) (1)
- Bayou Sale Gathering System (100%)
- Burns Terminal (38%)
- Cote Blanche Gathering System (100%)
- Patterson Terminal (55,000 barrels leased)
- Bay St. Elaine Gathering System (100%)
- (1) Ownership varies based on the segment of the line and level of throughput
The Partnership expects to become the operator of each of the nonleased
assets. The effective date of the transaction was June 13, 2003.
- E&Y: 2012 'Record Year' for O&G Deals (Jan 24)
- FTC Approves Kinder Morgan Acquisition of El Paso (May 01)
- Sources: KNOC A Partner in El Paso E&P Acquisition (Mar 19)
Company: Plains All American Pipeline more info
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