uploads///FACILTIES SEGMENT

Overview: Plains All American Pipeline’s facilities segment

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Sep. 15 2014, Updated 4:45 p.m. ET

Facilities segment

Plains All American Pipeline, L.P. (PAA) owns approximately

  • 74 million barrels of crude oil and refined products storage capacity
  • 23 million barrels of NGL (or natural gas liquids) storage capacity
  • 97 billion cubic feet of natural gas storage working capacity
  • 11 natural gas processing plants in Canada and the Gulf Coast region of the U.S.
  • One condensate stabilization facility in the Eagle Ford region
  • Seven fractionation plants located throughout the U.S. and Canada
  • 24 crude oil and NGL rail terminals located throughout the U.S. and Canada

Segments operating under the facilities segment

Crude oil and refined products facilitiesMajor facilities include the Cushing, Oklahoma, Terminal, which is the delivery point for crude oil futures contracts traded on the NYMEX (or New York Mercantile Exchange). The facility has access to all major inbound and outbound pipelines in Cushing and is designed to handle multiple crude oil grades.

Other facilities include:

  • The Kerrobert Terminal (located in Saskatchewan, Canada)
  • Four crude oil and refined products storage facilities in Los Angeles
  • Two terminals in the San Francisco
  • One terminal at Martinez
  • One terminal at Richmond

NGL storage facilitiesThe major facilities include:

  1. The Bumstead facility located near Phoenix, Arizona
  2. The Fort Saskatchewan facility located in Alberta—one of the key North American NGL hubs
  3. The St. Clair terminal and distribution facility located in Michigan

Natural gas storage facilities

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PAA owns three FERC (or Federal Energy Regulatory Commission) regulated natural gas storage facilities located in the Gulf Coast and Midwest with 149 billions of cubic feet equivalent (or Bcf) of working gas capacity. Customers include pipelines, producers, power generators, marketers, and liquefied natural gas (or LNG) exporters.

Natural gas processing facilities

PAA owns and operates five natural gas processing plants located in Louisiana and Alabama, with an aggregate natural gas processing capacity of approximately 0.6 Bcf per day.

Condensate stabilization facility

PAA owns a condensate stabilization facility in La Salle County, Texas. The facility, which currently has two stabilizers and a capacity of 80,000 barrels per day, is adjacent to PAA’s Gardendale terminal and rail facility.

Besides the above, PAA also operates crude and NGL rail facilities. Crude rail facilities service producers in the Niobrara, Eagle Ford, and Bakken Shale formations. PAA’s NGL rail facilities are strategically located near its NGL storage, pipelines, gas production, and propane distribution centers.

PAA’s customers who have access to these assets include Marathon Petroleum (MPC), Exxon Mobil (XOM), ConocoPhillips (COP), and Phillips 66 (PSX). Most of these companies are components of the Energy Select Sector SPDR Fund (XLE).

Continue reading the following part to learn about PAA’s supply and logistics segment.

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