Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Plains All American To Buy Crude Oil Rail Terminals For $500 Mln

12/5/2012 9:05 AM ET

Plains All American Pipeline, L.P. (PAA: Quote) Wednesday announced that it has agreed to buy four operating crude oil rail terminals from U.S Development Group or USD for about $500 million. The deal is expected to close before the end of this year.

The transaction includes three crude oil rail loading terminals located in Eagle Ford, Bakken and Niobrara producing regions with an aggregate daily loading capacity of nearly 85,000 barrels per day. The transaction received early termination of the required waiting period under the Hart-Scott-Rodino Act.

The assets to be acquired also include a rail unloading terminal at St. James, Louisiana with capacity of around 140,000 barrels per day, and a project to construct a crude oil unloading terminal near Bakersfield, California.

U.S. Development Group LLC is a Houston-based developer of unit train logistics and terminal facilities. Plains All is engaged in transportation, storage, terminalling, and marketing of crude oil, refined products, and liquid petroleum gas or LPG.

Greg Armstrong, chairman and CEO of Plains All stated, "These assets represent a very attractive addition to our existing North American rail activities, substantially improving our scale, scope, and flexibility."

"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," Armstrong added.

Plains All stated that following the acquisition and including projects currently under development, its North American crude oil rail business platform will have five loading terminals and three unloading terminals. Crude oil loading capacity is expected to total about 250,000 barrels per day, and unloading capacity is anticipated to be 335,000 barrels per day.

PAA closed Tuesday's regular trading at $45.52 on the NYSE.

Register
To receive FREE breaking news email alerts for Plains All American Pipeline LP and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Stocks moved mostly lower during trading on Wednesday, giving back some ground after trending higher over the past several sessions. Selling pressure was relatively subdued, however, limiting the downside for the markets. The major averages all closed in the red, although the tech-heavy Nasdaq underperformed its counterparts by a wide margin. Russian Foreign Minister Sergei Lavrov warned Wednesday that Moscow would retaliate strongly if its "interests" in Ukraine are attacked. He also criticized the Ukrainian administration for relaunching its so-called anti-terrorist operation in the east of the country a day earlier. Lavrov's remarks came in an interview with Russia Today, which published excerpts of the English-language interview to While selling pressure has remained relatively subdued, stocks continue to see modest weakness in mid-day trading on Wednesday. The losses on the day come on the heels of the upward trend seen over the past several sessions. The major averages have moved roughly sideways in recent trading, lingering in the red.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.