Plains All American Pipeline, L.P. (NYSE:PAA) today announced that it is constructing a new natural gas liquids (NGL) fractionator and is expanding its existing condensate stabilization facility in the Eagle Ford area of South Texas. The new fractionator is supported by long-term third-party commitments and will have a capacity of up to 15,000 barrels per day of NGL Y-Grade and off-spec Y-Grade product. The new fractionator, condensate stabilization expansion and related infrastructure enhancements are expected to require a total investment of approximately $120 million and are expected to be in service in the second quarter of 2015.
The fractionator will be located near existing PAA assets in Gardendale (La Salle County), including its condensate stabilization facility and rail and truck loading / unloading facilities. The facility is designed to fractionate NGL Y-Grade and to treat and fractionate off-spec Y-Grade sourced from PAA’s South Texas Gathering System and throughout the Eagle Ford producing region. Purity products expected to be produced include international refrigerant specification grade LE propane, EPA non-commercial grade butane and international specification natural gasoline. These products can be transported from PAA’s adjacent rail and truck loading facilities, providing access to premium markets for each purity product.
PAA’s existing Gardendale truck and rail infrastructure are being enhanced to facilitate loading, unloading and transporting Y-Grade and purity products, and PAA will build approximately 80,000 barrels of pressurized storage to accommodate Y-Grade and purity products. PAA is also adding a third condensate stabilization train that will provide approximately 40,000 barrels per day of incremental capacity to the existing condensate stabilization facility, bringing the total capacity to approximately 120,000 barrels per day.
Customer inquiries regarding the facility and related expansions should be directed to Robert Jernigan, Vice President of Supply at Plains Gas Solutions, at 713-993-5408.
PAA noted that it will provide an update on its expected 2014 organic growth capital investment (including the contribution of these projects to its total anticipated 2014 capital investment) during its fourth-quarter/year-end earnings conference call in early February, 2014.
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., 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.
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Roy I. Lamoreaux, 866-809-1291
Director, Investor Relations
Brad Leone, 713-646-4196