Plains All American to buy US crude oil rail terminals in $500m deal

05 December 2012 14:22  [Source: ICIS news]

HOUSTON (ICIS)--Plains All American Pipeline (PAA) has agreed to acquire four crude oil rail terminals and one terminal under development from US Development Group for about $500m (€380m), the US-based energy logistics and natural gas liquids (NGL) processing firm said on Wednesday.

The assets to be acquired include three crude oil rail loading terminals in the Eagle Ford, Bakken and Niobrara producing regions, a rail unloading terminal at St James, Louisiana, and a project to construct a crude oil unloading terminal near Bakersfield, California.

“Given recent and projected increases in North American crude oil production and volumetric and quality imbalances expected to occur in certain regions over the next several years, we believe that strategically located rail loading and unloading assets will continue to play an important role in the transportation of crude oil in North America,” said Greg Armstrong, CEO of PAA.

PAA expects to close the transaction before the end of the year.

PAA already owns a network of rail facilities for NGL in the US and Canada. To support its crude oil and NGL rail shipments, PAA expects to have about 6,700 railcars under lease by the end of 2013, it added.

($1 = €0.76)

By: Stefan Baumgarten
+1 713 525 2653

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