Plains All American to buy Canadian NGL, LPG business from BP

Plains All American Pipeline LP’s wholly owned subsidiary Plains Midstream Canada ULC will buy BP PLC’s Canadian NGL and LPG business. Assets include ownership interests of varying levels in and contractual rights relating to roughly 2,600 miles of pipeline, 20 million bbl of LPG storage, seven fractionation plants with about 232,000 b/d of capacity, multiple straddle plants, and two field gas processing plants with an aggregate capacity of 8 bcfd.

The purchase also included about 10 million bbl of long-term and seasonal NGL inventory as of Oct. 1.

The business includes various supply contracts at other field gas processing plants, shipping arrangements on third-party NGL pipelines, and long-term leases on 720 rail cars used to move product among various locations. The BP assets and activities collectively provide access to 140,000-150,000 b/d of NGL transported through a fully integrated network to fractionation facilities and markets in Western and Eastern Canada and the US Great Lakes region.

Barclays Capital served as financial advisor and Bennett Jones LLP as legal counsel to PAA in connection with the transaction, expected to close late first-quarter or early second-quarter 2012 for about $1.67 billion, subject to regulatory approval and customary closing conditions.

Plains announced expansion of its crude transportation capacity serving the Bone Spring play in West Texas’ Delaware basin earlier this year (OGJ Online, June 17, 2011).

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

Related Articles

Judge bars Anadarko e-mails as evidence in Macondo blowout hearing

03/21/2014 A federal district judge in New Orleans refused to accept e-mails between Anadarko Petroleum Corp. and BP PLC as evidence in a hearing to determine...

Industry group welcomes most UK budget moves

03/21/2014 Oil & Gas UK voiced support for all but one of several measures affecting the offshore producing industry announced in the UK government’s annu...

MARKET WATCH: Crude oil, gas futures prices slide entering spring

03/21/2014

The first day of spring in the northern hemisphere was marked by lower crude oil and natural gas futures prices.

OMV acquires West of Shetland licenses from Hess

03/21/2014 OMV AG has reached an agreement with Hess Corp. to acquire four licenses in West of Shetland, UK, including Cambo field and the Blackrock prospect,...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected