Plains All American Pipeline L.P.
) wholly owned subsidiary Plains Midstream Canada ULC has entered
into an agreement with Keyera Corp. to set up a liquids pipeline
system in northwest Alberta, Canada. The cost of this pipeline
project will be decided once volumes are confirmed and the
engineering design is finalized.
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Per the contract, both the entities will have equal ownership
rights in the pipeline. In this project, Plains All American
Pipeline will provide construction as well as operational
The new pipeline will be known as the Western Reach Pipeline
System. This 354.18-mile (570-kilometre) pipeline project is
expected to stretch from the Gordondale area of northwestern
Alberta to the natural gas liquids (NGL) energy hub in Fort
Saskatchewan, Alberta. It consists of two new-constructed
pipelines - one will employ for a mixture of butane, propane and
condensate (NGL mix) and the second will offer separate
Two different pipelines for the NGL mix and segregated condensate
will help customers to evade the pipeline operating costs in
batch mode. The customers will also have a choice to direct their
NGL mix and separated condensate to a range of fractionation,
storage, pipeline and terminal facilities at the Fort
Saskatchewan energy hub.
The pipeline operators normally invest substantial amounts to set
up new pipelines after getting long-term service assurance from
the petroleum companies. These entities do the same and start an
open season process for non-binding nominations for volumes to
start construction. This project is expected to be online by the
end of 2015, subject to regulatory approvals and completion of
the open season.
Western Reach Pipeline will pass through the Deep Basin area of
Alberta, and enable Plains All American Pipeline to tap Canada's
prospective liquids-rich geological territories, including the
Duvernay and Montney zones of western Canada.
It is evident from Plains All American Pipeline's recent organic
as well as inorganic strategies that the partnership continues to
strengthen its Canadian footprint. In 2012, the partnership
acquired BP Canada Energy Company, a subsidiary of
Apart from Plains All American Pipeline, another pipeline major
ONEOK Partners L.P.
) recently completed its Bakken NGL pipeline to strengthen its
presence in Canada. Bakken Shale is situated in Saskatchewan and
Manitoba, Canada, and western North Dakota and eastern Montana in
The majority of Canada's NGLs are aggregated for fractionation
and consequent delivery to the end-users from the Fort
Saskatchewan area. Both the entities have significant presence in
the Fort Saskatchewan area. We believe that the installation of
this new pipeline will enable both the entities to enhance their
presence in the region.
Houston, Texas-based Plains All American Pipeline, L.P. is a
publicly traded master limited partnership engaged in the
transportation, storage, terminalling and marketing of crude oil,
refined products and liquefied petroleum gas and other natural
gas related petroleum products.
Plains All American Pipeline currently has a Zacks Rank #3
(Hold). Another stock from the industry that is presently
performing better is Zacks Ranked #2 (Buy)
Delek Logistics Partners LP