Plains All American Pipeline (PAA) has completed acquisition of 50% stake in BridgeTex Pipeline Company (BridgeTex) from Occidental Petroleum for $1.075bn.
BridgeTex owns the 300,000 barrel-per-day crude oil pipeline system that extends from Colorado City in West Texas to Texas City and is also linked to PAA’s Basin Pipeline System and to the company’s Sunrise Pipeline at Colorado City.
The Sunrise pipeline, which is under construction, begins in Midland with an initial capacity of 250,000 barrels per day. The pipeline is anticipated to start services in December 2014.
An affiliate of Occidental is the anchor shipper on the BridgeTex pipeline and about 80% of its capacity is committed to long term contracts.
The remaining 50% stake in BridgeTex is owned by Magellan Midstream Partners, which is also acquiring the southern leg of the pipeline system running from Houston to Texas City for $75m.
PAA owns and operates midstream energy infrastructure and offers logistics services for crude oil, natural gas liquids (NGL), natural gas and refined products.