Plains All American Pipeline paid around $12 million for the assets, funding it with cash on hand and borrowings under the partnership’s revolving credit facility.
The primary assets of the acquisition include: the Terrebonne Bay Gathering System, Bay St Elaine Pipeline and the Cocodrie to Houma Pipeline.
These Shell assets fit extremely well with our existing operations in the area and enhance our ability to service our producer and refinery customers in south Louisiana. said George Coiner, senior group vice president of the partnership.
Coiner also stated that the partnership intends to spend approximately $8 million during 2005 to make modifications and improvements to the acquired assets and to integrate them into Plains All American’s existing asset base.
