PAA to acquire 50% interest in BridgeTex Pipeline

Plains All American Pipeline LP

Plains All American Pipeline LP (NYSE: PAA) has entered into a definitive purchase and sale agreement with Occidental Petroleum Corp. for the purchase by PAA of Occidental’s 50% interest in BridgeTex Pipeline Co. LLC for $1.075 billion.

BridgeTex owns the BridgeTex Pipeline, which is a new 300,000 barrel-per-day crude oil pipeline system that extends from Colorado City in West Texas to Texas City, Texas, and is complementary to PAA’s existing West Texas assets. At Colorado City, the BridgeTex Pipeline is connected to PAA’s Basin Pipeline System as well as PAA’s Sunrise Pipeline. The Sunrise Pipeline originates in Midland, Texas, and is currently under construction with an initial capacity of 250,000 barrels per day and is expected to be placed into service in December.

An affiliate of Occidental is the anchor shipper on the BridgeTex Pipeline. Approximately 80% of the pipeline’s capacity is committed to long term contracts with a volume weighted average tenor of 9.5 years (13.5 years taking into account shipper extension options). The remaining 50% interest in BridgeTex is owned by Magellan Midstream Partners LP, which is also the operator of the BridgeTex Pipeline.

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