By OGJ editors
HOUSTON, Sept. 26 -- Plains All American Pipeline LP, Houston, has agreed to acquire the ArkLaTex pipeline system and related marketing business from EOTT Energy LLC, Houston, for $15 million.
The transaction is expected to close Oct. 1. The ArkLaTex system consists of 337 miles of crude oil gathering and mainline pipelines that originate in north Louisiana and extend west, delivering crude oil to markets in the Longview, Tex. area.
The system has the ability to deliver crude oil to the Mid Valley pipeline system and the McMurrey pipeline system. In addition, the ArkLaTex system connects with All American's Red River pipeline system.
The ArkLaTex system transports 18,000 b/d of predominantly sweet crude oil. The transaction includes 590,000 bbl of crude oil storage capacity. The transaction also includes EOTT's crude oil supply contracts in the area of the pipeline operations.
