Plains All American Pipeline, L.P. (NYSE: PAA) today announced it is expanding its Gardendale Gathering system and constructing a new condensate stabilization facility in the Eagle Ford and building a new pipeline along the Gulf Coast. The projects are expected to be completed by the end of 2013 at a total cost of approximately $190 million.
The Gardendale Gathering system expansion involves constructing four crude oil gathering pipelines extending from Dimmitt and La Salle counties and terminating at PAA’s Gardendale Terminal in South Texas. The gathering lines, which range in size from 6 inches to 10 inches and total approximately 90 miles in length are designed to provide approximately 115,000 barrels per day of incremental gathering capacity. These lines will connect at Gardendale to long-haul pipelines, enabling shippers to deliver to Three Rivers, Corpus Christi or Houston area refiners. The new expansion pipelines are underpinned by producer agreements and are expected to be placed into service between the fall of 2012 and second-quarter 2013.
The new 80,000 barrel-per-day Eagle Ford condensate stabilization facility will be constructed adjacent to the Gardendale terminal. The facility is designed to extract Natural Gas Liquids (NGLs) from condensate, enabling the condensate to meet the shipping specifications of long-haul pipelines originating at Gardendale. The facility’s first 40,000 barrel-per-day phase, which also will include constructing related pressurized storage capacity, is expected to be in service in early October 2012. The second 40,000 barrel-per-day phase is expected to come into service near the end of 2012. The facility is underpinned by long-term commitments from producers on PAA’s Gardendale Gathering system and has the ability to be expanded based on increased production.
The new Gulf Coast pipeline is a 24-inch, 40-mile crude oil pipeline that will originate from PAA’s Ten Mile terminal in Mobile County, Ala. The project is underpinned by a long-term throughput and deficiency agreement with a shipper that includes the lease of approximately 1.5 million barrels of new and existing PAA storage capacity. The project is expected to be in service in the fourth quarter of 2013.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV