Jun 13, 2005 |
PAA Announces Plan to Construct Crude Oil Storage Facility at St. James, LA
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Contacts:
Phillip D. Kramer
Executive Vice President and CFO
713/646-4560 – 800/564-3036
A. Patrick Diamond
Manager, Special Projects
713/646-4487 – 800/564-3036
(Houston – June 13, 2005) Plains All American Pipeline, L.P. (NYSE: PAA) announced today that it intends to construct a new 2.9 million barrel crude oil storage and terminalling facility at St. James, Louisiana. Subject to unforeseen weather or permitting delays, the Partnership anticipates the new facility will become operational during the first quarter of 2007, and will cost approximately $70 million.
"St. James, Louisiana is one of the three most liquid crude oil interchanges in the United States and plays a vital role in the distribution of Gulf Coast crude oil production and the importation of foreign crude oil," said Greg L. Armstrong, Chairman and Chief Executive Officer of Plains All American. "Based on our own needs as well as market dynamics and industry fundamentals, we believe that there is a near-term need for additional tankage at the St. James interchange."
The Partnership has secured control of approximately 100 acres of land at the St. James interchange and intends to build a 2.9 million barrel storage facility comprised of seven tanks ranging in capacity from 170,000 barrels to 560,000 barrels. Similar to the Partnership's Cushing Terminal, the St. James Terminal will include a manifold and header system that will allow for receipts and deliveries with connecting pipelines at their maximum operating capacity and will readily accommodate future expansion of the facility.
"Plains All American has built a sizable presence in Cushing, Oklahoma, and Midland, Texas – the other two most liquid interchanges," continued Armstrong. "The construction of our St. James Terminal is the next logical step in our build-out of strategically located storage facilities from which we can service our refinery customers. In addition, the new facility will significantly strengthen our ability to provide our refinery customers with foreign crude oil supply alternatives."
The Partnership intends to discuss the St. James Terminal project and certain additional capital projects on its previously announced conference call to be held at 10:00 AM (Central) on Tuesday, June 14th.
Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, unanticipated shortages or cost increases in power supplies, materials and skilled labor, weather interference with business operations or project construction, disruption of Gulf Coast and foreign crude oil supplies, and other factors and uncertainties inherent in the marketing, transportation, terminalling, gathering and storage of crude oil. More information regarding such risks and uncertainties may be found in the Partnership's most recent 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission.
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. 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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