HOUSTON, September 19 /CNW/ - Plains All American Pipeline, L.P.
(NYSE: PAA) announced today that its subsidiary Plains LPG Services, L.P.
("Plains") has signed a definitive agreement to acquire the Tirzah LPG storage
facility from Suburban Propane, L.P. and Suburban Pipeline LLC for
approximately $55 million. The transaction is expected to close within 30
days, subject to satisfaction of certain closing conditions.
"The Tirzah facility will increase Plains' LPG storage capacity by over
25% and should give the Partnership a solid base of operations on the Eastern
seaboard, an attractive growth area for the Partnership," stated W. David
Duckett, President of Plains LPG Services, L.P. The facility is located in
York County, South Carolina, approximately 30 miles southwest of Charlotte,
North Carolina. Primary assets at the facility include approximately 57.5
million gallons of granite-cavern working storage capacity, 360,000 gallons of
above-ground storage capacity, a 62-mile LPG pipeline and a truck rack.
Plains All American Pipeline, L.P., a publicly traded master limited
partnership, is engaged in the transportation, storage, terminalling and
marketing of crude oil, refined products and liquefied petroleum gas and other
natural gas related petroleum products. Through its 50% ownership in
PAA/Vulcan Gas Storage LLC, the partnership is also engaged in the development
and operation of natural gas storage facilities. The Partnership is
headquartered in Houston, TX.
Certain statements made herein are forward-looking statements, including
statements regarding the timing and expected benefits of the Tirzah LPG
storage facility acquisition. These statements are based on management's
current expectations and estimates; actual results may differ materially due
to certain risks and uncertainties. For example, the timing of the acquisition
and the ability of the Partnership to achieve expected results may be affected
by successful completion of the acquisition and integration of the acquired
assets. Other risks and uncertainties that may affect actual results include
refinery downtime, continued creditworthiness of, and performance by, our
counterparties, unusual weather patterns, the effects of competition, the
success of our risk management activities, commodity price fluctuations,
regulatory changes, and other factors and uncertainties inherent in the
Partnership's business as discussed in the Partnership's Annual Report on Form
10-K for the year ended December 31, 2006 and Quarterly Report on Form 10-Q
for the quarter ended June 30, 2007 as filed with the Securities and Exchange
For further information:
For further information: Plains All American Pipeline, L.P., Houston
Executive Vice President and CFO Phil D. Kramer, 713-646-4560 or 800-564-3036
or Manager, Investor Relations Roy I. Lamoreaux, 713-646-4222 or 800-564-3036