HOUSTON (AP) — Plains All American Pipeline LP says it will buy rail terminals used to store and transfer crude oil for $500 million to help it prepare for increased U.S. oil production.
Plains operates oil pipelines across the country. By owning the terminals, it will also give the company more control over the oil it moves and allow it to avoid paying storage costs at rented terminals.
The Houston company is buying the terminals from U.S. Development Group, a privately held company that owns crude oil, petrochemical and ethanol terminal and storage centers across the U.S. and Canada.
The deal includes three terminals in the oil country of Texas, Colorado and North Dakota, one rail unloading terminal in Louisiana and another unloading terminal that's being built near Bakersfield, Calif.