BridgeTex owns the BridgeTex pipeline, a 300,000 barrel-per-day crude oil pipeline system, which extends from Colorado City in West Texas to Texas City.
BridgeTex’s remaining 50% interest is owned by Magellan Midstream Partners (MMP), which also operates the BridgeTex pipeline.
Plains All American chairman and CEO Greg Armstrong said: "Given recent and projected increases in Permian Basin production, we believe that BridgeTex will play an important role in providing needed takeaway capacity out of the Permian Basin, will provide additional flexibility for our customers and will expand PAA’s market access to the Gulf Coast.
"Upon achieving full operating capability, we anticipate PAA’s share of annualized EBITDA from BridgeTex LLC will range between $100 and $105 million.
"At that level, we expect the transaction to be approximately 1.5% accretive to PAA’s targeted 2015 distribution per unit and 5% accretive to PAGP’s corresponding distribution per share for 2015."
Additionally, BridgeTex has agreed to divest the southern leg of the pipeline system, which runs from Houston to Texas City, to MMP.
MMP also has agreed to enter into a long term capacity lease to provide BridgeTex shippers with access to capacity on the Texas City Leg.
Image: PAA owns network of pipeline transportation, storage and gathering assets in the US and Canada. Photo: courtesy of supakitmod/Freedigitalphotos.net.
