Plains All American Pipeline (PAA) has completed a new $500m facility to finance its unit’s purchase of a natural gas storage facility in US.

The credit facility, which matures in 364 days, will help in funding for PAA Natural Gas Storage (PNG) financing arrangements in connection with its purchase of the Southern Pines Storage facility.

In the last week of December 2010, PAA Natural Gas Storage, a unit of Houston-based PAA, said that it was acquiring SG Resources Mississippi, whose main asset is the Southern Pines Energy Center natural gas storage facility, for approximately $750m.

The company said that this credit facility may also be used for other corporate purposes.

Bank of America serves as the administrative agent and Merrill Lynch, Pierce, Fenner & Smith, DnB NOR Markets and JP Morgan Securities are joint lead arrangers and joint book managers.

DnB NOR Bank and JPMorgan Chase Bank serve as co-syndication agents while SunTrust Bank and Wells Fargo Bank serve as co-documentation agents.