Plains All American Pipeline, L.P. Completes Acquisition of Canadian NGL Business from Spectra Energy Corp
August 04 2016 - 11:02AM
Business Wire
Plains All American Pipeline, L.P. (NYSE: PAA) announced today
that its wholly owned subsidiary, Plains Midstream Canada ULC
(“PMC”), has completed the previously announced acquisition of the
Canadian natural gas liquids (“NGL”) business from Westcoast Energy
Inc., a wholly owned subsidiary of Spectra Energy Corp, for a cash
purchase price of approximately C$267 million (USD $204 million),
including approximately C$67 million (USD $51 million) for
inventory and working capital.
“PMC has been looking for the right opportunity to strengthen
our strategic position and further optimize one of our core
business areas,” said Dave Duckett, Chief Executive Officer of PMC.
"Integrated with our current infrastructure, these assets create
flexibility and optionality in our NGL business platform supporting
continued long-term profitability and growth for PMC.”
Transaction Highlights:
The acquisition includes an integrated system of assets,
consisting of the Empress NGL extraction and fractionation
facility, the Petroleum Transmission Company (“PTC”) pipeline,
seven NGL terminals and two NGL storage facilities in Western
Canada.
Additionally, this acquisition provides for the following
benefits:
- Enhances Strategic NGL Asset
Base: The acquired assets are a strategic complement to PMC’s
existing core Canadian NGL midstream operations adding 580 miles of
pipeline from Empress, AB, to the Fort Whyte Terminal in Winnipeg,
MB, to our existing 1,600 miles of NGL pipeline and increases our
current pipeline capacity by an additional 15,500 barrels per day.
The assets also include an additional 2.4 billion cubic feet per
day of NGL extraction capacity and 63,000 barrels per day of
fractionation capacity at Empress as well as 4.7 million barrels of
NGL storage.
- Improves Overall Efficiencies:
The acquired assets allow PMC to utilize excess fractionation
capacity as well as optimize NGL storage facilities that tie into
PMC’s existing systems.
- Creates Flexibility and
Opportunity: The assets create synergies with our current
Empress, AB operations. The Empress NGL extraction and
fractionation facility and the PTC pipeline system gives PMC access
to seven truck terminals and three rail loading facilities across
the system, which allows for increased flexibility in rail
operations and the ability to ship Canadian production to five
different railroads.
Duckett added, “This transaction also builds on a long-term
track record of driving significant value through acquisitions, and
we look forward to working with our stakeholders to continue to
operate safely and in an environmentally and socially responsible
manner."
Plains All American Pipeline, L.P. is a publicly traded master
limited partnership that owns and operates midstream energy
infrastructure and provides logistics services for crude oil, NGLs,
natural gas and refined products. PAA owns an extensive network of
pipeline transportation, terminalling, storage and gathering assets
in key crude oil and NGL producing basins and transportation
corridors and at major market hubs in the United States and Canada.
On average, PAA handles over 4.6 million barrels per day of crude
oil and NGL in its Transportation segment. PAA is headquartered in
Houston, Texas.
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version on businesswire.com: http://www.businesswire.com/news/home/20160804005915/en/
Plains All American Pipeline, L.P.Ryan Smith, (866)
809-1291Director, Investor Relations
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