Pacific Energy Partners, L.P. Announces the Commencement of Construction of Its Salt Lake City Pipeline Project
October 05 2006 - 11:07AM
Business Wire
Pacific Energy Partners, L.P. (NYSE:PPX) (�Pacific Energy�)
announced that Rocky Mountain Pipeline System LLC (�RMPS�), its
wholly-owned subsidiary and primary operating entity in the Rocky
Mountain region, is commencing construction of a new 16-inch
pipeline from the terminus of Frontier Pipeline near Evanston,
Wyoming, to the Salt Lake City, Utah, refining center. The new
pipeline, which is approximately 93 miles in length, will be
constructed parallel to and share much of the rights-of-way of
RMPS�s existing U-Crude pipeline to Salt Lake City. The new
pipeline is designed to transport multiple grades of crude oil in
segregated batches, including Canadian heavy crude oil and
synthetic crude oil. It will provide the capacity necessary to meet
increasing crude oil demand in Salt Lake City, for the near-term
and well into the future. The new pipeline will be constructed in
two phases. The first phase, which will add 43.5 miles of pipeline
and approximately 12,000 barrels per day of pumping capacity, is
expected to be completed by year end 2006. Construction of Phase
II, which will add the remaining 49.6 miles of pipeline, is
expected to be completed in October, 2007. Capacity of the
completed pipeline will be approximately 95,000 barrels per day.
�After months of preparation including permitting, rights-of-way
acquisition, engineering design and materials procurement, it is
exciting to see the actual construction of this pipeline begin,�
stated Irv Toole, President and Chief Executive Officer of Pacific
Energy. �Crude oil demand in Salt Lake City continues to grow, and
this pipeline will provide ample capacity for both light and heavy
crude oil for the foreseeable future. This project is an important
component of Pacific Energy�s strategy to serve the Rocky Mountain
refining market by providing a strategic pipeline corridor from
Edmonton, Alberta, to Salt Lake City for synthetic crude oil
supplies accessed directly in Edmonton, as well as conventional
Canadian and Rocky Mountain crude oil.� The expansion project has
strong support from Salt Lake City refiners. Four of the five
refiners in Salt Lake City have entered into 10-year transportation
agreements with RMPS for firm commitments to dedicate all volumes
shipped on Frontier Pipeline, which is owned 22.22% by Pacific
Energy, to the new 16-inch pipeline. As previously announced, the
total cost of the project is expected to be approximately $77
million. Approximately $31 million will be expended in 2006 with
the balance spent in 2007 to complete the project. About Pacific
Energy: Pacific Energy is a master limited partnership
headquartered in Long Beach, California. Pacific Energy is engaged
principally in the business of gathering, transporting, storing and
distributing crude oil, refined products and other related
products. Pacific Energy generates revenues by transporting such
commodities on its pipelines, by leasing capacity in its storage
facilities and by providing other terminaling services. Pacific
Energy also buys and sells crude oil, activities that are generally
complementary to its crude oil operations. Pacific Energy conducts
its business through two business units, the West Coast Business
Unit, which includes activities in California and the Philadelphia,
PA area, and the Rocky Mountain Business Unit, which includes
activities in five Rocky Mountain states and Alberta, Canada. For
additional information about Pacific Energy, please visit
www.PacificEnergy.com. Investor Notice: Pacific Energy and Plains
All American Pipeline, L.P. (�Plains�) have filed a joint proxy
statement/prospectus and other documents with the Securities and
Exchange Commission (�SEC�) with respect to the proposed merger of
Pacific Energy with and into Plains, which joint proxy
statement/prospectus has been declared effective by the SEC. The
definitive joint proxy statement/prospectus will be sent to
security holders of Pacific Energy and Plains seeking their
approval of the merger and related transactions. Investors and
security holders are urged to carefully read the joint proxy
statement/prospectus because it contains important information,
including detailed risk factors, regarding Pacific Energy, Plains
and the merger. Investors and security holders may obtain a free
copy of the definitive joint proxy statement/prospectus and other
documents containing information about Pacific Energy and Plains,
without charge, at the SEC's web site at www.sec.gov. Copies of the
definitive joint proxy statement/prospectus and the SEC filings
that are incorporated by reference in the joint proxy
statement/prospectus may also be obtained free of charge by
directing a request to Pacific Energy or Plains. Pacific Energy or
Plains and the officers and directors of the respective general
partners of Pacific Energy or Plains may be deemed to be
participants in the solicitation of proxies from their security
holders in connection with the proposed transaction. Information
about these persons can be found in Pacific Energy�s or Plains'
respective Annual Reports on Form 10-K filed with the SEC, and
additional information about such persons may be obtained from the
joint proxy statement/prospectus. Pacific Energy Partners, L.P.
(NYSE:PPX) ("Pacific Energy") announced that Rocky Mountain
Pipeline System LLC ("RMPS"), its wholly-owned subsidiary and
primary operating entity in the Rocky Mountain region, is
commencing construction of a new 16-inch pipeline from the terminus
of Frontier Pipeline near Evanston, Wyoming, to the Salt Lake City,
Utah, refining center. The new pipeline, which is approximately 93
miles in length, will be constructed parallel to and share much of
the rights-of-way of RMPS's existing U-Crude pipeline to Salt Lake
City. The new pipeline is designed to transport multiple grades of
crude oil in segregated batches, including Canadian heavy crude oil
and synthetic crude oil. It will provide the capacity necessary to
meet increasing crude oil demand in Salt Lake City, for the
near-term and well into the future. The new pipeline will be
constructed in two phases. The first phase, which will add 43.5
miles of pipeline and approximately 12,000 barrels per day of
pumping capacity, is expected to be completed by year end 2006.
Construction of Phase II, which will add the remaining 49.6 miles
of pipeline, is expected to be completed in October, 2007. Capacity
of the completed pipeline will be approximately 95,000 barrels per
day. "After months of preparation including permitting,
rights-of-way acquisition, engineering design and materials
procurement, it is exciting to see the actual construction of this
pipeline begin," stated Irv Toole, President and Chief Executive
Officer of Pacific Energy. "Crude oil demand in Salt Lake City
continues to grow, and this pipeline will provide ample capacity
for both light and heavy crude oil for the foreseeable future. This
project is an important component of Pacific Energy's strategy to
serve the Rocky Mountain refining market by providing a strategic
pipeline corridor from Edmonton, Alberta, to Salt Lake City for
synthetic crude oil supplies accessed directly in Edmonton, as well
as conventional Canadian and Rocky Mountain crude oil." The
expansion project has strong support from Salt Lake City refiners.
Four of the five refiners in Salt Lake City have entered into
10-year transportation agreements with RMPS for firm commitments to
dedicate all volumes shipped on Frontier Pipeline, which is owned
22.22% by Pacific Energy, to the new 16-inch pipeline. As
previously announced, the total cost of the project is expected to
be approximately $77 million. Approximately $31 million will be
expended in 2006 with the balance spent in 2007 to complete the
project. About Pacific Energy: Pacific Energy is a master limited
partnership headquartered in Long Beach, California. Pacific Energy
is engaged principally in the business of gathering, transporting,
storing and distributing crude oil, refined products and other
related products. Pacific Energy generates revenues by transporting
such commodities on its pipelines, by leasing capacity in its
storage facilities and by providing other terminaling services.
Pacific Energy also buys and sells crude oil, activities that are
generally complementary to its crude oil operations. Pacific Energy
conducts its business through two business units, the West Coast
Business Unit, which includes activities in California and the
Philadelphia, PA area, and the Rocky Mountain Business Unit, which
includes activities in five Rocky Mountain states and Alberta,
Canada. For additional information about Pacific Energy, please
visit www.PacificEnergy.com. Investor Notice: Pacific Energy and
Plains All American Pipeline, L.P. ("Plains") have filed a joint
proxy statement/prospectus and other documents with the Securities
and Exchange Commission ("SEC") with respect to the proposed merger
of Pacific Energy with and into Plains, which joint proxy
statement/prospectus has been declared effective by the SEC. The
definitive joint proxy statement/prospectus will be sent to
security holders of Pacific Energy and Plains seeking their
approval of the merger and related transactions. Investors and
security holders are urged to carefully read the joint proxy
statement/prospectus because it contains important information,
including detailed risk factors, regarding Pacific Energy, Plains
and the merger. Investors and security holders may obtain a free
copy of the definitive joint proxy statement/prospectus and other
documents containing information about Pacific Energy and Plains,
without charge, at the SEC's web site at www.sec.gov. Copies of the
definitive joint proxy statement/prospectus and the SEC filings
that are incorporated by reference in the joint proxy
statement/prospectus may also be obtained free of charge by
directing a request to Pacific Energy or Plains. Pacific Energy or
Plains and the officers and directors of the respective general
partners of Pacific Energy or Plains may be deemed to be
participants in the solicitation of proxies from their security
holders in connection with the proposed transaction. Information
about these persons can be found in Pacific Energy's or Plains'
respective Annual Reports on Form 10-K filed with the SEC, and
additional information about such persons may be obtained from the
joint proxy statement/prospectus.
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