HOUSTON--(BUSINESS WIRE)--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 Commission.