Plains All American Pipeline (PAA) says it will expand its oil capacity at its St James, Louisiana terminal facility under the fourth phase of its current development.
The company will add a further 1.2 million barrels of oil storage in the expansion, which is expected to cost about $50 million (€37 million) and be completed by the third quarter of 2012.
PAA made the announcement when revealing its predicted earnings for the third quarter of 2011, which was $340 million after EBITDA. This was a revised figure on the predicted $310 the company had originally expected to make.
Greg Armstrong, PAA’s CEO says: ‘Third-quarter results for the transportation segment will also benefit from the re-start of the Rainbow pipeline in late August. As a result, we currently expect our adjusted EBITDA will likely exceed the midpoint of our guidance range for the third quarter of 2011 by as much as 20% to 25%.’
The expansion project will bring the total storage on the site to 8.3 million barrels. The facility is situated next to the Mississippi River and receives oil by ship, pipeline and road. The jetty is currently being extended in order to load barge cargoes, with completion set for fourth quarter 2011.
The rail terminal currently has the capacity to offload about 65,000 barrels of oil a day but this is being increased to 130,000 by the end of this year as well.