PLAINS RESOURCES AND ARCO TO DEVELOP OIL STORAGE PROJECT ON THE HOUSTON SHIP CHANNEL
PLAINS RESOURCES AND ARCO TO DEVELOP OIL STORAGE PROJECT ON
THE HOUSTON SHIP CHANNEL
HOUSTON, Feb. 27 /PRNewswire/ -- Plains Resources (AMEX: PLX) said today that its marketing and transportation unit, Plains Marketing & Transportation Inc., and ARCO Pipe Line Company, a unit of Atlantic Richfield Company (NYSE: ARC), have signed a letter of intent expected to lead to the construction of a 600,000 barrel crude oil storage facility on the Houston ship channel. The facility will be located on ARCO Pipe Line's property in Galena Park, Texas, and will be used by Plains for the commercial storage of crude oil.
The new storage site will have access to multiple Gulf Coast receipt and delivery points and will be connected by ARCO's pipeline system to Plains' planned crude oil storage facility in Cushing, Okla. The Houston ship channel is a designated delivery point for the NYMEX sour crude oil futures contract and Cushing is the delivery point for the NYMEX sweet crude oil contract.
"This project will be significant for refiners, as well as for producers, crude oil traders and marketers who wish to take advantage of transactions in the futures and cash markets," said Harry N. Pefanis, president of Plains Marketing & Transportation. "Space at the Gulf Coast facility initially will be provided to customers at Plains' Cushing facility shipping on the ARCO system. The direct connection with ARCO is strategic since its pipeline is best positioned to handle the increased demand for foreign imports caused by declines in domestic production," he said.
Construction of the Gulf Coast facility is expected to begin upon the execution of a definitive agreement and the completion of engineering and design specifications. Ground breaking at Cushing is scheduled for late March. Plains will be the only company to offer dedicated independent storage in both Cushing and the Houston Ship channel.
Plains Resources is an independent oil and gas exploration and production company headquartered in Houston. During 1991, it was ranked by The Oil and Gas Journal as 113th among the largest publicly traded oil and gas companies in the United States.
/CONTACT: Nancy J. Kerby of Plains Resources, 713-654-1414/
(PLX ARC) CO: Plains Resources; Atlantic Richfield Company ST: Texas IN: OIL SU: SH -- NY045 -- 3246 02/27/92 11:57 EST