HOUSTON--(BUSINESS WIRE)--Plains All American Pipeline, L.P. (NYSE:PAA) today announced it is constructing new crude oil rail facilities in Tampa, Colo. and Yorktown, Va. and making additional modifications to its Yorktown facility. The new rail facilities and modifications are expected to be completed by the third-quarter of 2013 at an aggregate cost of approximately $125 million.
The Tampa facility is located approximately 50 miles northeast of Denver and is designed to receive crude oil via truck and pipeline and to load unit and manifest trains at a rate of up to 68,000 barrels per day. The facility is being built to service increasing DJ Basin crude oil production and is underpinned by firm contracts with large independent producers. The Tampa facility is expected to be in service in the third quarter of 2013. BNSF Railway Company will provide the rail transportation for the facility.
The Yorktown crude oil rail facility is being constructed at PAA’s multi-product terminal and is designed to receive unit and manifest trains with the capability to unload at a rate of up to 130,000 barrels per day. The project includes making modifications to the existing dock and related infrastructure to facilitate loading barges and ocean-going vessels at higher rates and handling multiple products. The rail facility and other modifications are expected to begin service in the first half of 2013. CSX will provide the rail transportation for the facility.
PAA owns a network of approximately 18,000 miles of liquids pipelines, approximately 120 million barrels of liquids storage capacity and handles more than 3 million barrels of physical product on a daily basis.
Plains All American Pipeline, L.P. is a publicly traded master limited partnership engaged in the transportation, storage, terminalling and marketing of crude oil and refined products, as well as in the processing, transportation, fractionation, storage and marketing of natural gas liquids. Through its general partner interest and majority equity ownership position in PAA Natural Gas Storage, L.P. (NYSE: PNG), PAA owns and operates natural gas storage facilities. PAA is headquartered in Houston, Texas.
Forward Looking Statements:
Certain matters discussed in this release are forward-looking statements that involve risks and uncertainties that could cause actual results or outcomes to differ materially from results or outcomes anticipated in the forward-looking statements. These risks and uncertainties include, among other things: shortages, cost increases or delays in receipt of supplies, materials or labor; inability to obtain, delays in the receipt of, or other issues associated with necessary licenses, permits, approvals, consents, rights of way or other governmental or third party requirements; the impact of current and future laws, rulings, orders, governmental regulations, accounting standards and statements and related interpretations; weather interference with business operations or project construction; environmental liabilities, issues or events that result in construction delays or otherwise impact targeted in-service dates; interruptions in service on third-party pipelines or facilities; general economic, market or business conditions and the amplification of other risks caused by volatile financial markets, capital constraints and pervasive liquidity concerns; and other factors and uncertainties inherent in the transportation, storage, terminalling and marketing of crude oil and refined products as discussed in the Partnership’s filings with the Securities and Exchange Commission.