HOUSTON–(BUSINESS WIRE)–Plains All American Pipeline, L.P. (NYSE: PAA) announced today that its wholly owned subsidiary, Plains Midstream Canada ULC (“PMC”), has completed the previously announced acquisition of the Canadian natural gas liquids (“NGL”) business from Westcoast Energy Inc., a wholly owned subsidiary of Spectra Energy Corp, for a cash purchase price of approximately C$267 million (USD $204 million), including approximately C$67 million (USD $51 million) for inventory and working capital.
“PMC has been looking for the right opportunity to strengthen our strategic position and further optimize one of our core business areas,” said Dave Duckett, Chief Executive Officer of PMC. “Integrated with our current infrastructure, these assets create flexibility and optionality in our NGL business platform supporting continued long-term profitability and growth for PMC.”
Transaction Highlights:
The acquisition includes an integrated system of assets, consisting of the Empress NGL extraction and fractionation facility, the Petroleum Transmission Company (“PTC”) pipeline, seven NGL terminals and two NGL storage facilities in Western Canada.
Additionally, this acquisition provides for the following benefits:
Duckett added, “This transaction also builds on a long-term track record of driving significant value through acquisitions, and we look forward to working with our stakeholders to continue to operate safely and in an environmentally and socially responsible manner.”
Plains All American Pipeline, L.P. is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, NGLs, natural gas and refined products. PAA owns an extensive network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, PAA handles over 4.6 million barrels per day of crude oil and NGL in its Transportation segment. PAA is headquartered in Houston, Texas.