By OGJ editors
HOUSTON, Dec. 18 -- Plains All American Pipeline LP reported that it has acquired all of the remaining interests in Atchafalaya Pipeline LLC from Shell Oil Products US unit Shell Pipeline Co. LP (SPLC) and Gulf Coast Field Services LLC in two separate transactions for a total of about $4.4 million.
The acquisition increases Plains's ownership in the 35 mile, 8-in. crude oil and condensate pipeline to 100% from 33 1/3%. In 2002, the system transported about 18,100 b/d of crude and condensate.
Atchafalaya Pipeline begins near Garden City, La., and extends east to near Gibson, La. The system receives oil and condensate from El Paso Corp. unit ANR Pipeline Co., CMS Energy Corp. unit CMS Trunkline Co., and a barge dock in the Patterson, La., area and delivers into tankage at Gibson.
In a separate transaction, Plains has signed a definitive agreement to acquire all of SPLC's interests in SPLC Capline Co. and SPLC Capwood Co. for a total of about $158 million. The two SPLC companies' key assets include interests in the Capline and Capwood pipeline systems.
SPLC Capline holds about 22% undivided joint interest in the 633 mile, 40-in. Capline Pipeline crude oil system, which begins in St. James, La., and extends to Patoka, Ill.
The Capline system, with a total system operating capacity of 1.14 million b/d of crude, is one of the main crude transportation routes into the Midwestern US.
SPLC Capwood owns about 76% undivided joint interest in the Capwood Pipeline crude oil system, which is a 57 mile, 20-in. mainline crude oil pipeline originating in Patoka and ending in Wood River, Ill.
The Capwood system has an operating capacity of 277,000 b/day of oil.
"The acquisition of the Capline and Capwood interests provides Plains All American with a direct pipeline link to crude oil markets in the Midwestern US," noted Greg L. Armstrong, chairman and CEO of Plains. The assets, Armstrong added, would complement Plains's transportation and storage assets in Cushing, La., while providing an additional means to transport crude from the south into Petroleum Administration of Defense District II (PADD II).