Plains All American Pipeline LP, Houston, (NYSE: PAA), reported that its wholly owned subsidiary, Plains Midstream Canada ULC, has agreed to acquire BP’s Canadian natural gas liquids (NGLs) and liquefied petroleum gas (LPG) business for a total consideration of some $1.67 billion. The acquisition is anticipated to close late in the first quarter or early in second-quarter 2012.

Plains completed a $385-million equity offering in early November and expected to retain approximately $300 million of cash flow in excess of distributions during 2011.

The assets to be acquired include ownership interests of varying levels in and contractual rights relating to some 2,600 miles of pipelines, 20 million bbl. of LPG storage capacity, seven fractionation plants with approximately 232,000 bbl. per day of capacity, multiple straddle plants and two field gas-processing plants with an aggregate capacity of approximately 8 billion cu. ft. per day. Also included are some 10 million bbl. of long-term and seasonal NGL inventory, as of October 1, 2011.

The business also includes various supply contracts at other field gas-processing plants, shipping arrangements on third-party NGL pipelines and long-term leases on 720 rail cars used to move product. Collectively, the BP assets and activities provide access to approximately 140,000 to 150,000 bbl. per day of NGL supply transported through an integrated network to fractionation facilities and markets in western and eastern Canada and the U.S. Great Lakes region.

Barclays Capital was financial advisor and Bennett Jones LLP was legal counsel to PAA.

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