logo
Share SHARE
FONT-SIZE Plus   Neg

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

Plains All American Pipeline, L.P. (PAA) 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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
French car maker Renault SA reported Friday higher profit in its fiscal 2015, with strong growth in automotive profit and revenues. The company announced higher dividend. Looking ahead, for fiscal 2016, Renault expects to increase group revenues at constant exchange rates and improve group operating margin. Shares of Rolls-Royce Holdings Plc were gaining around 13 percent in the morning trading in London after the engine maker reported more-than doubled profit in its fiscal year 2015, with lower one-time items. Underlying earnings were hurt by weakness in Marine markets. Further, the company halved its dividends, and still expects lower revenues next year. German steel giant ThyssenKrupp AG reported a loss in its first quarter, compared to last year's profit as sales and orders were hurt by sharp deterioration in materials businesses. The company said its overall performance in the first quarter was within its full-year forecast corridor. Looking ahead, the company continues to expect higher net income and flat sales for fiscal 2016.
comments powered by Disqus
RELATED NEWS
Trade PAA now with 
Follow RTT