Plains All American to buy crude oil rail terminals for $500 mln
Dec 5 (Reuters) - Plains All American Pipeline LP said it will buy four operating crude oil rail terminals and other assets from U.S. Development Group for about $500 million as North American oil output growth continues to outpace infrastructure development.
The company said it will buy three crude oil rail loading terminals in the Eagle Ford, Bakken and Niobrara shale fields, with a loading capacity of about 85,000 barrels per day. The other assets include a rail unloading terminal at St. James, Louisiana and another terminal being developed in California.
Soaring crude oil production from shale plays in Texas and North Dakota has been sent to the U.S. Midwest, building up inventories in the region and driving down prices for U.S. crude in relation to the global Brent benchmark.
This has sparked a race to build capacity to ship the crude to the nation's largest refining region.
Plains' North American crude oil rail business platform will include five loading terminals, with a total capacity of 250,000 barrels per day, and three unloading terminals, totaling 335,000 barrels per day, following the acquisition.
DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.