Plains All American converting Oklahoma LPG pipeline to crude service

HOUSTON, Texas - Plains All American Pipeline, L.P. (NYSE: PAA) on Dec. 8 announced it is converting an existing Oklahoma liquefied petroleum gas (LPG) pipeline into crude oil service.

The pipeline, which extends from Medford, Okla., to PAA's crude oil terminal facility in Cushing, Okla., will provide an initial crude oil throughput capacity of 12,000 barrels per day (b/d) by January 2012 and will be expanded to 25,000 /d by July 2012.

"Converting and expanding this pipeline provides timely take-away capacity for growing crude oil production in the Mississippian Lime formation in northern Oklahoma and southern Kansas," said Harry N. Pefanis, president and COO of Plains All American. "This project extends our commitment to service Mississippian producers and is one of a number of projects PAA is progressing to service the growing infrastructure needs in this area and multiple resource plays throughout North America."

Gavilon buying refined product racks from Plains All American Pipeline

OMAHA, Neb. - Gavilon, LLC on June 15 announced that it has signed a definitive agreement to purchase the refined products rack marketing business from Plains All American Pipeline, L.P.

The transaction will significantly expand Gavilon's participation in the wholesale fuels business, giving the company access to approximately 180 terminals throughout the U.S. The acquisition is expected to be complete during the third quarter of 2011.

"We are looking forward to being a critical link in the supply chain between producers and customers in the refined products marketing sector," said Rob Fuller, head of refined products marketing and trading at Gavilon. "The addition of this wholesale fuels rack marketing business will also greatly enhance our renewable fuels distribution network and diversify our customer base."

"We are very pleased to add such a strategic piece of business to our physical energy services portfolio," said Tom Ramsey, chief operating officer of Gavilon's energy segment. "This transaction will leverage our energy marketing and trading expertise, and grow our margin-based income."

The refined products rack marketing team will be based in Houston.

PAA declares increased distribution on limited partner units

HOUSTON, Texas - Plains All American Pipeline, L.P. (NYSE: PAA) on April 11 announced a quarterly cash distribution of $0.97 per unit ($3.88 per unit on an annualized basis) on all of its outstanding limited partner units.

The distribution will be payable on May 13 to holders of record at the close of business on May 3.

This distribution represents an increase of approximately 3.7 percent over the quarterly distribution of $0.935 per unit ($3.74 per unit on an annualized basis) paid in May 2010 and an increase of approximately 1.3 percent from the quarterly distribution of $0.9575 per unit ($3.83 per unit on an annualized basis) paid in February 2011.

As of this distribution, PAA will have increased its quarterly distribution to limited partners in 26 out of the past 28 quarters and in each of the past seven quarters.

PAA also stated that it expects to deliver adjusted EBITDA that will exceed the high end of its public guidance for the first quarter of 2011. PAA's financial guidance furnished on Feb. 9 included an adjusted EBITDA range of $280 million to $310 million for the first quarter of 2011.

Plains All American announces Shafter expansion project

HOUSTON, Texas - Plains All American Pipeline, L.P. (NYSE: PAA) on Feb. 9 announced plans to construct its Shafter Expansion Project, which consists of a new Liquefied Petroleum Gas (LPG) pipeline system and related upgrades to its Shafter LPG processing facility near Bakersfield, Calif.

The project is underpinned by a five-year transportation agreement with a subsidiary of Occidental Petroleum Corp. and is currently expected to cost approximately $50 million. The pipeline will link the Shafter facility with Occidental's Elk Hills gas processing plant and related infrastructure. PAA has targeted placing the project into service during the third quarter of 2012.
The Shafter Expansion Project involves constructing a 15-mile LPG pipeline system with a designed throughput capacity of over 10,000 barrels per day as well as enhancing PAA's storage and rail capabilities at its Shafter facility. PAA's Shafter facility currently includes approximately 200,000 barrels of Natural Gas Liquid (NGL) storage, and a processing facility with butane isomerization capacity of 14,000 b/d and NGL fractionation capacity of 12,000 b/d.

PAA anticipates investing approximately $30 million on the Shafter Expansion Project during 2011, and making the balance of the investment during 2012. (Source: Business Wire, Feb. 9, 2011)

Plains All American acquiring Vulcan Capital share in natural gas storage venture

HOUSTON - Plains All American Pipeline, L.P. and Vulcan Capital on Aug. 28 announced that they have executed definitive agreements under which a subsidiary of PAA will acquire Vulcan Capital's 50 percent indirect interest in PAA Natural Gas Storage, LLC (PNGS).
The aggregate purchase price of $220 million consists of $90 million cash, 1.9 million PAA common units valued at $90 million and deferred contingent cash consideration of up to $40 million. The contingent consideration is subject to achievement of certain events and performance milestones expected to occur over the next several years. The transaction is expected to close on Sept. 3, 2009.
As a result of the transaction, PAA will own all of the natural gas storage business and related operating entities, which will be accounted for on a consolidated basis.
The Partnership has historically accounted for its 50 percent indirect interest in PNGS under the equity method. At closing, PAA will repay the joint venture's outstanding project finance debt using joint venture cash and borrowings under its revolving credit facility. As of June 30, 2009, the joint venture had approximately $450 million of debt and approximately $52 million of cash.