By MELODIE WARNER
Plains All American Pipeline agreed to acquire five
crude-oil rail terminals from US Development Group for $500
million as the pipeline company looks to expand its nationwide
The deal includes three crude-oil rail loading terminals in
the Eagle Ford, Bakken and Niobrara producing regions, a rail
unloading terminal at St. James, La., and a project to construct a crude oil
unloading terminal near Bakersfield, Calif.
"These assets represent a very attractive addition to our
existing North American rail activities, substantially
improving our scale, scope, and flexibility," said CEO Greg L.
Plains expects to complete the purchase before the year
The company said its North American crude-oil rail business
will include five loading terminals and three unloading
terminals, following the acquisition and projects currently under
Plains, which transports, stores and sells oil and natural
gas, receives fees for many of its services, so it is less
affected by the volatility of oil and gas prices. The
partnership also holds a 48% stake in PAA Natural Gas Storage
L.P., the company's gas-storage spinoff.
The company said it currently owns about 18,000 miles of
liquids pipelines, 120 million bbl of liquids storage capacity
and handles more than 3 million bbl of physical product on a
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