Profile: Plains All American Pipeline LP (PAA)

PAA on New York Consolidated

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29 Jan 2015
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Plains All American Pipeline, L.P. (Plains) is 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 (NGL). The term NGL includes ethane and natural gasoline products, as well as propane and butane, products, which are also commonly referred to as liquefied petroleum gas (LPG). The Company’s operations are conducted directly and indirectly through its primary operating subsidiaries. Through its general partner interest in PAA Natural Gas Storage, L.P., it also owns and operates natural gas storage facilities. The Company operates in three segments: Transportation, Facilities, and Supply and Logistics. The Company has network of transportation, terminalling and storage facilities at various markets and in oil producing basins, as well as crude oil, refined product and LPG transportation corridors in the United States and Canada. In July 2013, Magellan Midstream Partners LP announced that it has closed on its previously-announced acquisition of pipeline assets in Texas and New Mexico from Plains All American Pipeline LP. In November 2013, Magellan Midstream Partners, L.P. acquired Rocky Mountain pipeline assets from Plains. In December 31, 2013, it completed the merger of PAA Natural Gas Storage, L.P with a wholly owned subsidiary of Plains, with the Company surviving the merger as a wholly owned subsidiary of PAA.

On December 29, 2011, the Company acquired crude oil, refined products and LPG storage and the associated manifold and pumping equipment located at Western’s Yorktown, Virginia refinery site, and 82-mile, 16-inch segment of pipeline that originates in Chaves County, New Mexico and connects into its Basin Pipeline system at Jal, New Mexico, as well as associated tankage, piping and other related assets at the Lynch and Jal Stations. On November 29, 2011, the Company acquired Velocity South Texas Gathering, LLC (Velocity). On February 9, 2011, the Company acquired SG Resources Mississippi, LLC (SG Resources). During the year ended December 31, 2011, it acquired propane storage and terminal facilities included within its facilities segment, a trucking business included in its transportation segment, as well as the right to ship on third-party pipelines.

Transportation Segment

The Company’s transportation segment operations generally consist of fee-based activities associated with transporting crude oil and refined products on pipelines, gathering systems, trucks and barges. It also has investments in Settoon Towing, White Cliffs, Butte and Frontier. As of December 31, 2011, the Company employed a variety of owned or leased long-term physical assets throughout the United States and Canada in this segment, including 16,000 miles of crude oil and refined products pipelines and gathering systems; 23 million barrels of above-ground tank capacity used primarily to facilitate pipeline throughput; 67 trucks and 382 trailers, and 82 transport and storage barges and 44 transport tugs through its interest in Settoon Towing.

The Company owns an approximate 87% joint interest in and is the operator of the Basin Pipeline system. The Basin system is a primary route for transporting crude oil from the Permian Basin (in west Texas and southern New Mexico) to Cushing, Oklahoma, for further delivery to Mid-Continent and Midwest refining centers. The Basin system is a 521-mile mainline, telescoping crude oil system with a system capacity ranging from approximately 144,000 barrels per day to 400,000 barrels per day depending on the segment. System throughput (as measured by system deliveries) was approximately 440,000 barrels per day during 2011. The Basin system consists of four primary movements of crude oil: barrels that are shipped from Jal, New Mexico to the West Texas markets of Wink and Midland; barrels that are shipped from Midland to connecting carriers at Colorado City; barrels that are shipped from Midland and Colorado City to connecting carriers at either Wichita Falls or Cushing and foreign and Gulf of Mexico barrels that are delivered into Basin at Wichita Falls and delivered to connecting carriers at Cushing. The system also includes approximately six million barrels of tankage located along the system.

The Company operates wholly owned systems of approximately 3,000 miles that aggregate receipts from wellhead gathering lines and bulk truck injection locations into a combination of 4- to 16-inch diameter trunk lines for transportation and delivery into the Basin system at Jal, Wink and Midland, as well as its terminal facilities in Midland, Texas. During 2011, combined throughput on the Permian Basin area systems totaled an average of approximately 404,000 barrels per day. The Company owns a 100% interest in the All American Pipeline system. The All American Pipeline is a common carrier crude oil pipeline system that transports crude oil produced from two outer continental shelf (OCS), fields offshore California via connecting pipelines to refinery markets in California. The system at Las Flores receives crude oil from ExxonMobil’s Santa Ynez field, while the system at Gaviota receives crude oil from the Plains Exploration and Production Company-operated Point Arguello field. These systems both terminate at its Emidio Station. Between Gaviota and its Emidio Station, the All American Pipeline interconnects with its San Joaquin Valley Gathering System, Line 2000 and Line 63, as well as other third party intrastate pipelines.

The Company owns a 100% interest in the Line 63 system. The Line 63 system is an intrastate common carrier crude oil pipeline system that transports crude oil produced in the San Joaquin Valley and California OCS to refineries and terminal facilities in the Los Angeles Basin and in Bakersfield. The Line 63 system consists of a 144-mile trunk pipeline (of which 102 miles is 14-inch pipe and 42 miles is 16-inch pipe), originating at its Kelley Pump Station in Kern County, California and terminating at its West Hynes Station in Long Beach, California. The trunk pipeline has a capacity of approximately 110,000 barrels per day. The Line 63 system includes five miles of distribution pipelines in the Los Angeles Basin, with a throughput capacity of approximately 144,000 barrels per day, and 148 miles of gathering pipelines in the San Joaquin Valley, with a throughput capacity of approximately 72,000 barrels per day. It also has approximately one million barrels of storage capacity on this system. These storage assets are used primarily to facilitate the transportation of crude oil on the Line 63 system.

The Company owns and operates 100% of Line 2000, an intrastate common carrier crude oil pipeline that originates at its Emidio Pump Station (part of the All American Pipeline System) and transports crude oil produced in the San Joaquin Valley and California OCS to refineries and terminal facilities in the Los Angeles Basin. Line 2000 is a 130-mile, 20-inch trunk pipeline with a throughput capacity of approximately 130,000 barrels per day. During 2011, throughput on Line 2000 (excluding Line 63 volumes) averaged approximately 53,000 barrels per day. The Company operates the Salt Lake City Area systems, in which it owns interests of between 75% and 100%. The Salt Lake City Area systems include interstate and intrastate common carrier crude oil pipeline systems that transport crude oil produced in Canada and the United States Rocky Mountain region to refiners in Salt Lake City, Utah and to other pipelines at Ft. Laramie, Wyoming. The Salt Lake City Area systems consist of 731 miles of pipelines and approximately one million barrels of storage capacity. These systems have a throughput capacity of approximately 20,000 barrels per day from Wamsutter, Wyoming to Ft. Laramie, Wyoming; approximately 49,000 barrels per day from Wamsutter, Wyoming to Wahsatch, Utah, and approximately 120,000 barrels per day from Wahsatch, Utah to Salt Lake City, Utah. For 2011, throughput on the Salt Lake City Area systems in total averaged approximately 137,000 barrels per day.

The Capline Pipeline system, in which it owns an aggregate joint interest of approximately 54%, is a 631-mile, 40-inch mainline crude oil pipeline originating in St. James, Louisiana, and terminating in Patoka, Illinois. It also owns a 100% interest in approximately 720,000 barrels of tankage located at Patoka, Illinois. Capline has direct connections to certain amount of crude production in the Gulf of Mexico. In addition, it has two docks capable of handling approximately 600,000-barrel tankers and is connected to the Louisiana Offshore Oil Port and its St. James terminal and transports sweet and light sour foreign crude to PADD II. Total designed operating capacity is approximately 1.1 million barrels per day of crude oil, of which its attributable interest is approximately 600,000 barrels per day. Throughput on its interest averaged approximately 160,000 barrels per day during 2011.

The Company owns and operates pipeline systems that sources crude oil from the Cleveland Sand, Granite Wash and Mississippian/Lime resource plays of Western and Central Oklahoma, Southwest Kansas and the eastern Texas Panhandle. These systems consist of over 2,000 miles of pipeline with transportation and delivery into and out of its terminal facilities at Cushing. During 2011, combined throughput on the Mid-Continent Area systems totaled an average of approximately 213,000 barrels per day. The Company owns a 100% interest in the Rangeland system. The Rangeland system consists of a 554 mile, 8-inch to16-inch mainline pipeline and 667 miles of 3-inch to 8-inch gathering pipelines. The Rangeland system transports NGL mix, butane, condensate, light sweet crude and light sour crude either north to Edmonton, Alberta or south to the United States/Canadian border near Cutbank, Montana, where it connects to its Western Corridor system. Total average throughput during 2011 on the Rangeland system was approximately 59,000 barrels per day.

The Company owns a 100% interest in the Rainbow system. The Rainbow system consists of a 480-mile, 20-inch to 24-inch mainline crude oil pipeline extending from the Norman Wells Pipeline located in Zama, Alberta to Edmonton, Alberta and 114 miles of gathering pipelines. The system has a throughput capacity of approximately 220,000 barrels per day and transported approximately 135,000 barrels per day during 2011. The Company owns a 100% interest in the Manito heavy oil system. This 555-mile system consists of the Manito pipeline, the North Sask pipeline and the Bodo/Cactus Lake pipeline. Each system consists of a blended crude oil line and a parallel diluent line, which delivers condensate to upstream blending locations. The North Sask pipeline is 84 miles in length and originates near Turtleford, Saskatchewan and terminates in Dulwich, Saskatchewan. The Manito pipeline includes 334 miles of pipeline, and the mainline segment originates at Dulwich and terminates at Kerrobert, Saskatchewan. The Bodo/Cactus Lake pipeline is 137 miles long and originates in Bodo, Alberta and also terminates at its Kerrobert storage facility. The Kerrobert storage and terminalling facility is connected to the Enbridge pipeline system and can both receive and deliver heavy crude from and to the Enbridge pipeline system. During 2011, approximately 66,000 barrels per day of crude oil were transported on the Manito system. In January 2012, it completed the conversion of an Oklahoma LPG pipeline into crude oil service. The pipeline extends from Medford, Oklahoma to its terminal facility at Cushing.

Facilities Segment

The Company’s facilities segment operations generally consist of fee-based activities associated with providing storage, terminalling and throughput services for crude oil, refined products, LPG and natural gas, LPG fractionation and isomerization services and natural gas processing services. As of December 31, 2011, it owned, operated and employed a variety of long-term physical assets throughout the United States and Canada in this segment, including approximately 71 million barrels of crude oil and refined products storage capacity primarily at its terminalling and storage locations; approximately nine million barrels of NGL/LPG storage capacity; approximately 76 billion cubic feet of natural gas storage working capacity; approximately 14 billion cubic feet of base gas in storage facilities owned by the Company; a fractionation plant in Canada with a processing capacity of approximately 4,400 barrels per day, and a fractionation and isomerization facility in California with an aggregate processing capacity of approximately 26,000 barrels per day, and four natural gas processing plants located in the Gulf Coast area.

The Company’s Cushing, Oklahoma Terminal (the Cushing Terminal) is located at the Cushing Interchange. It owns a crude oil and condensate storage and terminalling facility, which is located near Kerrobert, Saskatchewan and is connected to its Manito and Cactus Lake pipeline systems. The total storage capacity at the Kerrobert terminal is approximately one million barrels. Plains owns five crude oil and refined product storage facilities in the Los Angeles area with a total of approximately nine million barrels of useable storage capacity and a distribution pipeline system of approximately 50 miles of pipeline in the Los Angeles Basin. Approximately eight million barrels of the storage capacity are used for commercial service and approximately one million barrels are used primarily for throughput to other storage tanks and for displacement oil.

The Company uses the Los Angeles area storage and distribution system to service the storage and distribution needs of the refining, pipeline and marine terminal industries in the Los Angeles Basin. Its Los Angeles area system’s pipeline distribution assets connect its storage assets with refineries, its Line 2000 pipeline, and third-party pipelines and marine terminals in the Los Angeles Basin. The Company owns two terminals in the San Francisco, California area: a terminal at Martinez (which provides refined product and crude oil service) and a terminal at Richmond (which provides refined product service). Its San Francisco area terminals have approximately five million barrels of combined storage capacity that are connected to area refineries through a network of owned and third-party pipelines that carry crude oil and refined products to and from area refineries. The terminals have dock facilities and its Richmond terminal is also able to receive products by train.

As of December 31, 2011, the Company had a marine terminal in Mobile, Alabama (the Mobile Terminal) that had useable capacity of approximately two million barrels. Approximately three million barrels of additional storage capacity is available at its nearby Ten Mile Facility, which is connected to is Mobile Terminal via a 36-inch pipeline. The Mobile Terminal is equipped with a ship/tanker dock, barge dock, truck unloading facilities and various third-party connections for crude oil movements to area refiners. Additionally, the Mobile Terminal serves as a source for imports of foreign crude oil to PADD II refiners through its Mississippi/Alabama pipeline system, which connects to the Capline System at its station in Liberty, Mississippi.

The Company’s Patoka Terminal has approximately five million barrels of storage capacity and the associated manifold and header system at the Patoka Interchange located in southern Illinois. The Company owns four refined product terminals in the Philadelphia, Pennsylvania area. Its Philadelphia area terminals have a combined storage capacity of approximately four million barrels. The terminals have 20 truck loading lanes, two barge docks and a ship dock. The Philadelphia area terminals provide services and products to all of the refiners in the Philadelphia harbor, and include two dock facilities. The Philadelphia area terminals also receive products from connecting pipelines and offer truck loading services.

The Company has approximately seven million barrels of crude oil storage capacity at the St. James crude oil interchange in Louisiana. The facility includes a manifold and header system. The facility is also connected to a third party rail-unloading facility. As of December 31, 2011, the Company received approximately 60,000 barrels of crude oil per day by rail. During 2011, it acquired Western Refinery in Yorktown, Virginia and is operating it as a terminal. This facility has approximately six million barrels of storage for crude oil, black oil, propane, butane, and refined products, including 1.6 million barrels of capacity for which it holds lease options. The Yorktown facility has its own deep-water port on the York River with the capacity to service the receipt and delivery of product from ships and barges. This facility also has a truck rack and rail capacity. Pier 400 is a project to develop a deepwater petroleum import terminal at Pier 400 and Terminal Island in the Port of Los Angeles to handle marine receipts of crude oil and refinery feedstocks.

The Bumstead facility is located at a rail transit point near Phoenix, Arizona. With approximately 133 million gallons of working capacity (approximately 100 million gallons, or approximately two million barrels, of useable capacity), the facility’s primary assets include three salt-dome storage caverns, a 24-car rail rack and six truck racks. The Tirzah facility is located in South Carolina and consists of an underground granite storage cavern with approximately one million barrels of useable capacity. The Tirzah facility is connected to the Dixie Pipeline System (a third-party system) via its 62-mile pipeline. The Company’s Shafter facility located near Bakersfield, California provides isomerization and fractionation services to producers and customers of NGL. The primary assets consist of approximately 200,000 barrels of NGL storage and a processing facility with butane isomerization capacity of approximately 14,000 barrels per day and NGL fractionation capacity of approximately 12,000 barrels per day.

Bluewater is located in the State of Michigan. Bluewater primarily services seasonal storage needs throughout the Midwestern and northeastern portions of the United States and the Southeastern portion of Canada. Bluewater’s customers consist primarily of pipelines, utilities and marketers seeking seasonal storage services. Bluewater’s 30-mile, 20-inch diameter pipeline header system is supported by 13,350 horsepower of compression and connects with three interstate and three natural gas utility pipelines that provide access to the market places of Chicago, Illinois and Dawn, Ontario, which supply natural gas to eastern Ontario and the northeastern United States. These interconnects also provide access to natural gas utilities that serve local markets in Michigan and Ontario. The Company owns and operates four natural gas processing plants located in Louisiana and Alabama with an aggregate natural gas processing capacity of 1.2 billion cubic feet per day.

Supply and Logistics Segment

The Company’s supply and logistics segment operations generally consist of the merchant-related activities, which includes the purchase of the United States and Canadian crude oil at the wellhead and the bulk purchase of crude oil at pipeline and terminal facilities, as well as the purchase of waterborne cargoes at their load port and various other locations in transit; the storage of inventory during contango market conditions and the seasonal storage of LPG; the purchase of LPG from producers, refiners and other marketers; the resale or exchange of crude oil and LPG at various points along the distribution chain to refiners or other resellers, and the transportation of crude oil and LPG on trucks, barges, railcars, pipelines and ocean-going vessels to various delivery points. The supply and logistics segment also employs a variety of owned or leased physical assets throughout the United States and Canada, including nine million barrels of crude oil and LPG linefill in pipelines owned by the Company; two million barrels of crude oil and LPG linefill in pipelines owned by third parties and other long-term inventory; 622 trucks and 731 trailers, and 2,453 railcars (all of which are leased). The Company purchases crude oil and LPG from multiple producers under contracts. It utilizes its truck fleet and gathering pipelines, as well as leased railcars, third-party pipelines, trucks and barges to transport the crude oil to market. In addition, it purchases foreign crude oil.

The Company purchases LPG from producers, refiners, and other LPG marketing companies under contracts that generally range from immediate delivery to one year in term. It utilizes its trucking fleet, as well as leased railcars and third-party tank trucks or pipelines to transport LPG. In addition to purchasing crude oil from producers, the Company purchases both domestic and foreign crude oil and refined products in bulk at pipeline terminal locations and barge facilities. It also purchases LPG in bulk at pipeline terminal points and storage facilities from integrated oil companies, independent producers or other LPG marketing companies. The Company sells its crude oil to integrated oil companies, independent refiners and other resellers in various types of sale and exchange transactions. It also sells LPG primarily to retailers and refiners, and limited volumes to other marketers. The Company’s merchant activities involve the purchase of crude oil, natural gas, refined products and LPG for resale.

Company Address

Plains All American Pipeline LP

Suite 1600, 333 Clay Street
HOUSTON   TX   77002
P: +1713.6544100
F: +1713.6464680

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