The construction of Phase IX, X and XI expansion projects will expand PAA’s existing crude oil storage capacity by approximately 30% and improve the connectivity of PAA’s Cushing, Oklahoma terminal.
The partnership expects these projects to cost a total of approximately $85m.
The Phase IX expansion consists of making a high-capacity connection to Keystone Pipeline, completing certain terminal modifications to enable Keystone deliveries at full line rates, and constructing two 270,000 barrel tanks at a total cost of approximately $20m.
The Partnership plans to be ready to accept Keystone deliveries in the first quarter of 2011.
The Phase X & XI expansions include constructing fourteen 270,000 barrel tanks for a total of approximately 3.8 million barrels of crude oil storage capacity, which are expected to be placed into service in stages from the second through fourth quarters of 2011, at a total cost of approximately $65m.
Approximately $25m of the total capital is expected to be invested in 2010 and the remainder in 2011.
