Plains All American cuts 2020-2021 capital spending 33%

Plains All American has cut its 2020-2021 capital program by $750 million. Total expansion capital for 2020-2021 is now targeted to be $1.55 billion, 33% lower than the previously targeted $2.3 billion capital program, and $1.35 billion (47%) lower when eliminating $600 million of assumed joint venture project financing (net to Plains) for the Red Oak project, which has been deferred (OGJ Online Mar, 24, 2020).

First quarter 2020 expansion capital expenditures are estimated to be $350 million. The company said it could potentially defer and further reduce the capital program, subject to producer activity levels on the Plains system.

On Apr. 1, the company closed an incremental asset sale, which generated proceeds of $165 million and brings year-to-date proceeds to $245 million. An additional $195 million asset sale remains under definitive agreement and is expected to close later in the year. Efforts to advance additional asset sales opportunities continue, the company said.