Plains All American plans Shafter LPG system expansion

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Feb. 9 -- Plains All American Pipeline LP reported plans to construct its Shafter Expansion Project, consisting of a 10,000 b/d LPG pipeline system and related upgrades to its Shafter LPG processing facility near Bakersfield, Calif. A 5-year transportation agreement with a subsidiary of Occidental Petroleum Corp. underpins the project, currently expected to cost about $50 million. Oxy also has a general partner ownership stake in Plains All American.

The pipeline will link the Shafter facility with Oxy’s Elk Hills gas processing plant and related infrastructure. Plains has targeted a third-quarter 2012 in-service date.

The Shafter expansion involves building a 15-mile LPG pipeline system as well as enhancing Plains’ storage and rail capabilities at the Shafter facility. The facility currently includes roughly 200,000 bbl of NGL storage and a processing facility with 14,000 b/d butane isomerization capacity and 12,000 b/d NGL fractionation capacity. Plains anticipates spending $30 million on the Shafter project in 2011 and the balance during 2012.

Oxy agreed in December 2010 to increase its general partner ownership in Plains to 35% from 22%, describing the move at the time as complimentary to its US oil and gas operations (OGJ Online, Dec. 10, 2010).

Contact Christopher E. Smith at chriss@ogjonline.com.

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