Plains All American increases stake in Capline

 @ibtimes
on January 04 2010 1:34 PM

Plains All American Pipeline LP said it had increased its stake in the Capline Pipeline system after buying additional interest and associated tankage for $64 million.

The pipeline operator said the assets acquired included a 21 percent undivided interest in Capline and a 100 percent interest in 720,000 barrels of tankage at Patoka, Illinois. Its aggregate interest in Capline is now 43 percent.

The additional interests and tankage were acquired directly or indirectly from Chevron, Marathon Oil Corp and Shell Pipeline Co, a unit of Royal Dutch Shell Plc.

Capline is a 633-mile-long crude oil pipeline that runs from St. James, Louisiana, to Patoka, Illinois.

Total designed operating capacity of Capline is about 1.1 million barrels per day, with about 470,000 barrels per day of capacity attributable to Plains All American's interest, the company said.

Shares of Plains All American rose 2 percent to touch a two-year high of $53.83 Monday morning on the New York Stock Exchange.

(Reporting by Arup Roychoudhury in Bangalore; Editing by Mike Miller)

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