Dec 5 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
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.